by Raildudes dad » February 1, 2018, 6:08 pm
The salt business isn't cut throat. The big guys collude big time in the bidding. Google Ohio DOT Salt bid rigging etc. They just got caught there.
I've spent 40+ years in the road business and 10 years on the front lines of winter maintenance. Detroit Salt was inactive for years. It reopened and started bidding on the state contract. They opened terminals served by rail since the big 3 control all the docks. They would make the big expenditures on the sites for permitting, unloading equipment ,stockpile equipment etc. They even shipped a little from a dock in Detroit - by tug barge not the usual carriers
Next round of bidding they would get undercut for the area around their terminal and not get one location. Looking at the prices it was very obvious what the big 3 were doing. DS couldn't make any money, just lose a lot.
DS got the bid for a large county on the west side. They couldn't keep up with trucks during the storms (as I predicted) and had the contract revoked. It was re-awarded to one of the big 3 ,The next year it was just coincidental that one of the big 3 delivered cheaper from the dock to the west and even quite a ways east of the county. Payback for taking the DS bid the year before. I came right out and told the big 3 rep (at a customer free lunch no less) they were colluding but I couldn't prove it. I didn't win any any brownie points that day.
DS seems to have found a niche away from the lakes where they can compete by rail with trucks from the docks and the smaller accounts like the landscapers / private guys.
IIRC, they are now owned by a company out of Canada.
The salt business isn't cut throat. The big guys collude big time in the bidding. Google Ohio DOT Salt bid rigging etc. They just got caught there.
I've spent 40+ years in the road business and 10 years on the front lines of winter maintenance. Detroit Salt was inactive for years. It reopened and started bidding on the state contract. They opened terminals served by rail since the big 3 control all the docks. They would make the big expenditures on the sites for permitting, unloading equipment ,stockpile equipment etc. They even shipped a little from a dock in Detroit - by tug barge not the usual carriers
Next round of bidding they would get undercut for the area around their terminal and not get one location. Looking at the prices it was very obvious what the big 3 were doing. DS couldn't make any money, just lose a lot.
DS got the bid for a large county on the west side. They couldn't keep up with trucks during the storms (as I predicted) and had the contract revoked. It was re-awarded to one of the big 3 ,The next year it was just coincidental that one of the big 3 delivered cheaper from the dock to the west and even quite a ways east of the county. Payback for taking the DS bid the year before. I came right out and told the big 3 rep (at a customer free lunch no less) they were colluding but I couldn't prove it. I didn't win any any brownie points that day.
DS seems to have found a niche away from the lakes where they can compete by rail with trucks from the docks and the smaller accounts like the landscapers / private guys.
IIRC, they are now owned by a company out of Canada.