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  September 1st, 2016 | Written by

Continental Refining Harnesses Intermodal Transportation

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  • Oil refining sector is expanding.
  • Kentucky's Continental Refining implementing new logistics.
  • Continental Refining expanding use of intermodal to distribute and receive oil products.

Continental Refining Company has implemented the use of railcars to carry oil products to and from its refinery in Somerset, Kentucky, to the Somerset Rail Park in Ferguson, Kentucky, where the oil is offloaded or loaded onto trains for final distribution across the country.

The use of intermodal transportation began for Continental Refining Company in late July. The company is currently bringing in gasoline components for gasoline pool blending and hopes to continue procuring additional blending components going forward. In addition, the company is also buying transmix, a type of fuel produced when different fuels mix together in the fuel distribution system, which is also brought in by rail. Continental Refining Company plans to increase to up to 10 railcars per week for its transportation purposes.

“By using intermodal transportation, we will not only make both receipt of crude oil to our refinery and delivery of petroleum products to our customers more effective, we will also reduce overall inbound and outbound shipping costs for Continental Refining Company,” said Demetrios Haseotes, Continental Refining Company CEO/President. “We now have the added advantage in our region of shipping products farther and reducing costs, while utilizing a new resource.”

The initiative is part of a public-private partnership involving the company, Somerset, and Pulaski County, Haseotes added. “We are excited to be able to expand operations on a national level, in this way, while also helping our local economy,” he commented.

Continental Refining Company, U.S. Refinery #5113, is located on 93 acres in Somerset, Pulaski County, Kentucky, adjacent to intermodal rail and close to barge facilities for rapid shipping. With 15 modern fuel tanker trailers for regional transportation, it is one of only 150 refineries in the United States.

Continental Refining Company is the only refinery for southern Kentucky crude oil supply; the closest alternative is over 170 miles away. Its production capacity equals 5,500 barrels per day and has storage capacity of 107,000 barrels of crude oil and refined products. The company produces premium off-road diesel both for commercial and industrial uses. Continental services utility companies, railroads, barges, shipyards, the marine industry, factories, hospitals, and governmental agencies.