Cape & Son (PYCO)

Cape & Son, a leader in commodity merchandising and transloading services, sought to enhance its operational efficiency by expanding its rail transportation capabilities. To achieve this, the company partnered with Sweetwater Economic Development (SEED) to lease two locomotives for transporting railcar units from its Sweetwater facility to the BNSF switching yard, optimizing nationwide shipping operations.

SEED supported this initiative by purchasing the locomotives for up to $520,000 and leasing them to Cape & Son. This strategic move not only improved the company’s shipping efficiency but also leveraged Sweetwater’s strategic rail location to stimulate local job creation.

The partnership proved successful, with Cape & Son fulfilling all terms of the agreement by June 2016, leading to the transfer of locomotive ownership to the company. Building on this success, Cape & Son requested additional support in July 2018 to further expand its operations, including purchasing more land, installing extra tracks, and acquiring a ten-ton overhead crane. SEED responded with a $600,000 incentive package contingent on increasing rail traffic. As of February 2023, Cape & Son is on track to meet the requirements of this new agreement, reinforcing the company’s growth and its positive impact on Sweetwater’s economy.

This collaboration underscores the effectiveness of SEED’s targeted investments in driving business growth and supporting the local economy.