I was in Watsonville Monday and noticed that the Apple Growers Ice & Cold Storage Co. Building was being demolished. I drove around back and was surprised to see stacks of rotted ties and thought the old spur tracks where Southern Pacific used to ice their refrigeration cars were being pulled, but I then noticed that the track furthest from the Apple Growers Building and closest to where the new biofuel plant is going in was being rehabilitated with all new ties, plates and spikes. The day before I was thinking about calling North Star Biofuels to see when they would begin working on the new plant, and the workmen rehabilitating the track Monday confirmed that the refurbished spur was for the new North Star Biofuels plant. I understand the underground storage tanks will be installed in the next 30 days.

This is an excellent development for Iowa Pacific and could mean 1000 carloads a year and jobs for the Watsonville area. In addition, with the Apple Growers Ice & Cold Storage Co. Building being demolished, that property would be a perfect location to build a modern transloading terminal. I believe we will see significant rail car traffic growth in the future for the Watsonville area.