KCS, Global Partners To Develop ‘Oil Train’ Terminal
Kansas City, MO – The Kansas City Southern Railway (KCS) is partnering with New England-based Global Partners LP to develop a unit train terminal in Port Arthur, Texas.
The waterborne terminal, which will be constructed on a 200-acre parcel leased from the KCS by Global Partners, will initially serve as a destination for heavy crude from Western Canada utilizing 340,000 barrels of initial storage capacity.
When fully operational with the commencement of unit train service, the terminal is expected to have an initial capacity of up to 2 unit trains per day.
Construction of the terminal is contingent upon Global Partner’s receipt of all necessary permits.
“The Port Arthur terminal represents a significant opportunity to capitalize on strong demand for the movement of Western Canadian crude initially to one of the world’s premier refining centers in the US Gulf Coast,” said KCS President and Chief Executive Officer David L. Starling.
“Through their established base in the Northeast, North Dakota, Western Canada and the Pacific Northwest, Global,” he said, “has built an outstanding reputation for the quality of its logistics and terminal operations.”
Headquartered in Kansas City, Missouri, Kansas City Southern has railroad investments in the US, Mexico and Panama. Its primary US holding is the Kansas City Southern Railway Company, serving the central and south central US.
Its international holdings include Kansas City Southern de Mexico, S.A. de C.V., serving northeastern and central Mexico and the port cities of Lázaro Cárdenas, Tampico and Veracruz, and a 50 percent interest in Panama Canal Railway Company, which provides ocean-to-ocean freight and passenger service along the Panama Canal.
The railway’s North American rail holdings and strategic alliances are primary components of a NAFTA Railway system, linking the commercial and industrial centers of the US, Mexico and Canada.
Headquartered in Waltham, Massachusetts, Global Partners LP is a purchaser and seller of and logistics provider for domestic US- and Canadian-sourced crude oil and other products by rail across its “virtual pipeline” from the US Midwest and Canada the East and West Coasts for distribution to refiners and other customers.
The company owns, controls or has access to refined petroleum product and renewable fuel terminal networks throughout the US Northeast, and also distributes gasoline, distillates, residual oil and renewable fuels to wholesalers, retailers and commercial customers in New England and New York.
With a portfolio of approximately 900 locations primarily in the Northeast, Global also distributes natural gas and propane, and serves as the independent owner, supplier and operator of gasoline stations and convenience stores across the country.