On Wednesday, Jan. 15, the Virginia Department of Rail and Public Transportation (DRPT) announced the approval of a $750,000 grant under its Rail Industrial Access Program to Sims Metal for rail upgrades at its metal recycling facility located in Chesapeake, VA.
During its January 2025 meeting on the 14th, the Commonwealth Transportation Board voted to award the grant, which will assist in connecting the facility to the freight railroad network.
Sims Metal plans to utilize the grant for a $1.4 million project to construct over 400 linear feet of new rail track, including an in-track scale. In support of the rail project, the company is also investing an additional $20 million in capital expenditures to improve processing capacity at the site.
The rail project is expected to yield significant benefits, including the diversion of almost 2,000 trucks per year from local roads, the creation of new jobs, and a 46 percent private investment.
At its Chesapeake facility Sims Metal processes end-of-life ferrous and nonferrous materials into critical recycled raw material inputs for their customers, including steel mills, aluminum, and copper smelters. Their processes include using advanced technology aimed at product differentiation to meet customer specifications and the capture of additional metal content. The work at Chesapeake contributes critical recycled raw material units into the local Virginia community, as well as broader domestic manufacturing supply chains.
“Our goals with these investments are to improve our processing capacity for both the ferrous and nonferrous sides of our business and increase our access to domestic markets,” said Michael Henderson, Chief Operating Officer, Sims Metal, North America. “The rationale was to diversify and increase optionality on our various pathways to market.”
According to Henderson, Sims Metal’s Chesapeake site is a strategic location for the company given it is next to the key Elizabeth River waterway. Currently, the site has the capacity to ship recycled metals by truck, barge, vessel, and container, but limited capacity to ship by rail.
“We saw an opportunity to add another level of optionality in our pathway to market through increased use of rail, enhancing our ability to service customers in domestic markets,” he said.
The Rail Industrial Access Program aims to promote truck diversion by providing grant assistance for projects that enhance rail access for new or expanding businesses. Supported projects include engineering, site preparation, track construction, track rehabilitation, track improvement, environmental mitigation, and mainline railroad switch installation. The grant requires a 30 percent match from the applicant.
“The Rail Industrial Access Program continues to play a vital role in supporting Virginia’s growing economy while enhancing the sustainability of our transportation network,” said DRPT Director Tiffany Robinson. “By connecting Sims Metal to the freight rail system, this project not only promotes environmentally responsible practices but also reduces truck traffic, creating safer and more efficient travel for residents and businesses in the region.”
Henderson adds that the rail project strongly aligns with Sims Metal’s environmental and safety goals and its purpose; to create a world without waste to preserve our planet.
When compared with trucks, which must often travel hundreds or thousands of miles to reach their destination, using rail cuts down the distances that must be traveled. This enhances operational efficiency and at the same time lowers the environmental footprint of product transportation.
“The investments we’re undertaking at our Chesapeake site demonstrates Sims Metal’s commitment to the recycled materials industry, Virginia, and to playing our part in strengthening domestic value chains” Henderson said. “Our goal is to process more ferrous and nonferrous metal, more efficiently, and be a valued part of the manufacturing supply chain in North America.”
On Wednesday, Jan. 15, the Virginia Department of Rail and Public Transportation (DRPT) announced the...