Crude-by-Rail Terminal Projects Abound Despite Drop in Shipments

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Researched by Industrial Info Resources (Sugar Land, Texas)--Despite falling crude-by-rail shipments, there are 15 active crude-by-rail terminal projects worth nearly $1 billion in North America that are being tracked by Industrial Info. These include 12 U.S. projects, valued at $792 million, and three Canadian projects, valued at $195 million.

Crude-by-rail shipments have been on downslide in North America, following the plunge in crude prices. The Association of American Railroads (AAR) has reported U.S. Class I railroads originated 111,068 carloads of crude oil in the second quarter of 2015, down 21,189 carloads, or 16% from third-quarter of 2014, which is the peak quarter for rail crude oil originations. Canada's National Energy Board, meanwhile, reported the country's crude-by-rail exports were 83,605 barrels per day (BBL/d) in second-quarter 2015, down 46% from 154,318 BBL/d in second-quarter 2014.

All of the North American crude-by-rail terminal projects being tracked by Industrial Info are in the planning phases, where various factors could alter their outcome.

A joint venture by Savage Services (Midvale, Utah) and Tesoro Corporation (NYSE:TSO) (San Antonio, Texas) is developing a grassroot crude rail unloading terminal to be built at the Port of Vancouver in Washington. The facility would load ships bound for West Coast refineries. Currently in the permitting stage, the project includes construction of six tanks with a total shell capacity of 380,000 barrels and a working capacity of 340,000 barrels. Capable of unloading 30 rail cars at a time, the terminal would be able to ship 140,000 BBL/d of primarily Bakken crude, with the possibility of expanding to 280,000 BBL/d.

BergerABAM (Federal Way, Washington), is serving as civil engineer for the project, which has a total investment value of $150 million. Kick-off is set for second-quarter 2016, with completion in second-quarter 2017.

In Canada, TORQ Transloading Incorporated (Calgary, Alberta) plans to build a crude-by-rail facility near Kerrobert, Saskatchewan. The project, valued at $100 million, is in the permitting stage. It includes installation of multiple 50,000-barrel storage tanks, for a total capacity of 500,000 barrels. Trains from the facility would move both light and heavy crude to west coast refiners. Fortress Engineering Ltd (Calgary) is serving as the project engineer. Construction kickoff is currently set for fourth-quarter 2015, with completion in third-quarter 2016.

Pittsburg, California is where WesPac Midstream LLC (Irvine, California) is planning a two-phase modernization project for a crude-by-rail marine terminal. The project includes refurbishing five tanks with bottom replacements, as well as construction of four new 200,000-barrel tanks, a rail transload facility and 8,000 feet of landing track. WesPac is working with operator Oiltanking North America LLC (Houston, Texas) on permitting for the project, with construction kickoff set for first-quarter 2016. Both phases would be completed by the end of 2017.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.