CIG Logistics Acquires Rail Facility in Odessa, Texas
CIG Logistics, an oil and gas logistics provider, has acquired a 330-acre rail facility in Odessa, Texas from Flint Hills Resources.
The purchase price and terms of the acquisition were not disclosed.
The Odessa facility is a logistics hub for the energy industry fulfilling a key role in the movement of crude oil and frac sand by rail and truck to and from the Permian Basin in west Texas and southeastern New Mexico. The large-scale facility is served directly by the Union Pacific Railroad and has 29,000 feet of track including two unit train loop tracks and ten ladder tracks.
With the acquisition, CIG Logistics will strengthen its core business of transloading energy-related products, according to a company statement. The terminal’s size, railcar capacity, and location will enable CIG to expand its logistics services to additional industries, which will include the construction, aggregate, chemical, and automotive sectors.
“The acquisition of the Odessa terminal continues to demonstrate our long term confidence in the strength of the energy sector and our commitment to making substantial and strategic investments to support our growing customer base,” said Jonathan Green, chief executive officer of CIG Logistics. “We look forward to partnering with our nation’s key industrial companies in the region to improve supply chain logistics and ultimately strengthen our economy.”
The site has the ability to load unit trains of crude oil and unload other bulk products. The terminal is expected to employ many skilled workers, including railroad engineers, conductors and industrial operators.
The Odessa terminal is CIG’s eighth transloading and storage facility located in Texas and New Mexico. The company operates Texas-based terminals in Lubbock, Slaton, San Antonio, Big Lake, Hugh Springs and Southton, as well as a terminal in Jal, New Mexico.