Lake State Railway received grant money and financial assistance from various government agencies to allow it to lay track to service a scrap metal recycling facility in Gaylord, Mich.
The short line railroad recently received close to $2 million from various state and local government agencies to allow it to lay about 2.3 miles of track to give A & L Iron and Metal, Gaylord, Mich., direct access to a rail line.
The scrap recycler, which is in the process of putting in an auto shredding and sorting line, earlier had said that the company would need to have direct access to rail to allow it to be competitive with other companies.
A spokesman for Lake State says the company hopes to start laying the track by this summer. It has to work with several other property owners to obtain an easement to allow it to put track on their property.
According to local press reports A & L’s planned shredder facility, estimated to cost around $4.5 million will allow the company to increase the number of employees it has.
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