After going through third parties for many years to sell his grain on the world market, Wayne took the plunge in the late 90s into exploring going direct to buyers out the U.S. It was a financial decision that has both risks and rewards. The reward is being able to retain a greater margin of profit because he no longer has to share profits with the middleman. The risks are in finding the markets, being able as a small producer compared to the Fortune 500 agribusinesses in finding the resources needed to get his soybeans from Southern Minnesota to ports in China and Japan and other world markets.

 After many hours of due diligence and two trips to Japan to exhibit at trade conferences, Wayne got his first direct sale in 2002, earning a $1 or $2 more per bushel than he could have secured through a third party. He began exporting his soybeans in containers to ports in Japan. Getting to the right ports presented some challenges as the shipping lines available to him did not regularly visit some of the smaller ports where his products were destined.

 About two years ago, Wayne attended North Star Rail Intermodal’s open house at the newly opened NSTerminals transloading site in Montevideo, Minn., where he was re-acquainted with professionals now on North Star’s team who he had engaged at former companies to ship grain products. Because of his excellent service experience with this team, he began working with Bob Reinecke, president of North Star Container to access containers and arrange shipping to several Asian ports.

 “North Star has the relationships that enable my shipments to reach some of the smaller, more out of the way ports that I had challenges reaching,” says Wayne. “Because they have contracts with multiple shipping lines, they also get a good rate for me.”

  “North Star has professionals who are very experienced and know how to get things done,” say Wayne. “For example, when exporting products, documentation is always a concern. But, they get the paperwork to the port in time for my buyers to claim their freight.”

 In addition to his seed and soy products businesses, Wayne and his son also farm about 2,000 acres that provide a portion of the soybeans they export. They acquire the remainder from other soybeans producers in order to meet the growing needs of the markets both in and outside the U.S.

 Being able to have North Star Container as a cost-effective and reliable partner on the logistics side, allows the Knewtsons to continue to expand their agribusiness from the traditional family farm model to one of global provider of grain and grain products.

NAPERVILLE, ILL. — North Star Container, a subsidiary of North Star Rail Intermodal, LLC, has opened an office in the Greater Chicago area to serve suppliers of grain and grain products shipping commodities to markets in Asia and Europe. Containerized shipping lowers costs and increases profitability for farmers, processors and ethanol producers. North Star Container (NSC) is a full service non-vessel operating common carrier (NVOCC) that also has operations in Minneapolis.

“Containers allow us to maintain the quality of the products being shipped,” says Robert (Bob) Reinecke, president of NSC. “By combining short-line railroads and containers, we bring the containers closer to the product origination point, again saving transportation costs for our customers.”

North Star Container’s scheduled intermodal train service enables customers to commit specific quantities in advance to global customers on a year round basis, giving both sellers and buyers abroad the ability to secure product more efficiently with greater profit margins. In the Greater Chicago area, commodities are transloaded from trucks to containers at a number of terminals contracted by NSC. In addition to the intermodal terminals, NSC has negotiated contracts with several major shipping lines serving the Asian and European markets.

Working in concert with its sister companies, North Star Grain International and NSTerminals, NSC ships:

• Distiller’s dried grains solubles (DDGS), a by-product of ethanol production that is used for livestock and poultry feed.
• Identity-preserved grains and grain products that need their unique pedigrees maintained as they move from farms or elevators to their final destinations.
• Other high-quality grains and grain products that can command higher prices because they are not mixed with lesser quality products and arrive in sealed containers that prevent contamination.

Reinecke joined North Star Container in January bringing more than 20 years of experience in global shipping with CP Ships and Hapag-Lloyd. He has extensive experience in linking Midwest commodities with global markets. While with CP Ships, Reinecke helped launch their Midwest Transpacific providing additional volumes and services for Midwest import/export.

About North Star Rail Intermodal, LLC
North Star Rail Intermodal, LLC, (NSRI) provides transportation and marketing services for grain and grain products to Asian and European destinations. Through its subsidiaries, North Star Grain International, North Star Container and NSTerminals, NSRI integrates the movement of commodities from the point of origination to delivery at their final destination. Headquartered in Edina, Minn., NSRI has offices in Chicago and Montevideo.