Hillsboro Banner Reports on Alton Grain Terminal Growth

On April 12th, 2003 the Hillsboro Banner, the award winning weekly newspaper of Hillsboro and Trail County, reported on the progress of the Alton Grain Terminal. The following articles were written by the Banner's editor, Neil O. Nelson.

Where Trucks Meet Trains

Alton Grain Terminal plans major building project this year; concrete bins will add 1 million bushel to storage capacity. With plans already in the mix to build a fertilizer plant at its Alton Grain Terminal, the Halstad Elevator Co. isn't stopping there. The decision was made this year to double the terminal's storage capacity; two concrete bins accommodating another million bushel will be added to the north face of the Alton terminal.

The project is one year ahead of Robin Stene's building plans. The general manager of the Halstad Elevator Company had hoped to expand the storage capacity of the grain terminal south of Hillsboro next year. "It's one year ahead of schedule," offered Stene. The board of directors, he said, "felt we could do it this year." Said Stene, "It's pretty exciting. It gives us something to do this summer."

Exciting and a reflection of the terminal's aggressive grain marketing. Alton's inland terminal marketing provided grain merchandiser Keith Finney the opportunity to buy grain from more than 40 elevators last year. The Alton Grain Terminal started out two short years ago buying only from its eight affiliated elevators, Clifford, Galesburg, Eldred, Georgetown, Hunter, Luverne, Reynolds and Halstad. Finney brought two more elevators on board Wednesday, bringing the number to 45. "That's a big plus," admitted Stene.

Another "big plus" is the fact that the terminal has never had an issue with the weights and grades of the commodities purchased, thanks to the North Dakota Grain Inspection team on board at the fast-loading terminal. Still, Stene credits much of the terminalšs success to Finney and Brad Kjar, who handles the day-to-day operation of the facility. Both men are talking to elevators and grain buyers daily. "They make a good team," said Stene of his two key employees.

On occasion, Keith Finney leaves his computer and desk, realizing he just bought more grain before the grain markets opened than he did in a matter of several months at elevators he worked at early in his career. On those days of especially heavy grain buying, Finney admits to being amazed. Simply amazed.

There's been a lot of change in 30 years, he tells. We were unloading single axle trucks and wagons then, he explains. Now we're unloading and loading semi-trucks and hoppercars, he continues. "On a good day 30 years ago we would load 9,000 bushel into a boxcar in a day. It takes a few minutes to load 10,000 bushel today."

A semi from Stephen, Minn. was unloading Tuesday at the Alton Grain Terminal. On the BNSF railroad tracks, half of a 110-unit shuttle train was slowly moving south, its hoppercars filling systematically. Finney is buying grain and beans from elevators along Highway 59 in Minnesota west to elevators along Highway 83 in North Dakota. Right now, Finney said, "we have the best soybean market."

The grain merchandiser wouldn't be surprised if the grain terminal brings in another 20 million bushels in small grains before the fiscal year expires. "We're well over projections." The surge in business has been a "pleasant surprise to Keith Finney. The local support, he said, "has been overwhelming." But, he explains, "it's our job" to provide the best market, "to put dollars into bank accounts. "Fifteen cents more a bushel, at 20 million bushels, has quite an impact on any trade area."

Like Stene, Finney is anticipating an exciting summer surrounding the Alton Grain Terminal. Between harvests is normally a quiet time for terminals; not necessarily at the Alton terminal. "I expect we'll be pretty busy this summer," said Finney. The additional storage space, provided by the planned building project, will eliminate harvest problems with storage encountered at the terminal, Finney is sure. The additional one million bushels in storage means Alton could accommodate five waiting shuttle trains. It also means the terminal can clear out its wheat before the corn harvest starts and move its corn before the bean harvest begins. Said Finney, "It's utilizing your space to the maximum."

Repeating what Robin Stene said of the N.D. Grain Inspection team working at the terminal, Finney told how his customers appreciate the professionalism of the NDGI team. "They (Alton's customers) know they'll be treated fairly." The two full-time NDGI staff, four when the terminal handles a lot of wheat, are professionally trained, said Finney. They monitor all the grain, coming and going, he added.

Finney expects to be dealing with additional elevators in the tri-state region. "They're watching us." Still, it all boils down to how you treat the customer, Finney explains. "We have to perform. If we don't, they'll look elsewhere."

Finney remains impressed with the Red River Valley, the heart of the RRV at Hillsboro, in particular. The Alton Grain Terminal is a perfect fit. Logistically, he said, it couldn't be a better fit. The terminal and its parent company, Halstad Elevator, are progressive in their operations and in their aggressive planning. Keeping pace with the changing times, moving ahead at the opportune time, said both Stene and Finney, is the key to success.

This is not a company that stops or stalls, according to Keith Finney. Everyone involved in the giant grain terminal that shadows Hillsboro "expects more good things to happen," said Finney. The planned fertilizer plant on the south side of Alton, and the new half million bushel concrete bins on the north side are proof of not only what can happen but what is possible. "They understand what needs to be done. They're on the cutting edge."

Grain terminal at Alton easily surpasses early grain-handling projections

In his position, Robin Stene must make projections. Prior to fiscal year 2002, Stene, manager of the Halstad Elevator Co., over-estimated the number of bushels the Alton Grain Terminal would handle. At the same time he under-estimated the profit that would be realized by the terminal south of Hillsboro.

When he was done counting last fall, he knew he was "short on bushels, and over on dollars." Stene guessed the shuttle-loading terminal in 2002 would handle 13,020,000 bushels. It handled just under 13 million. The elevator manager estimated the terminal would realize a net margin of $890,600. The fast-loading terminalšs total net margin was more than $940,000, of which $440,000 was returned to the terminal's eight member elevators.

For all practical purposes, Stene's forecasts were met. Stene and his board of directors were undeniably pleased with how the terminal performed. They're even more pleased this year. Stene, for the fiscal year 2003, budgeted a grain handle of 13,260,000 bushels. By the end of March, seven months into the fiscal year, the Alton Grain Terminal had handled 14.7 million bushels. "Amazing," said Stene. With a good wheat crop, the terminal could handle another 17 to 18 million bushel, said Stene.

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