North America to See $315 Million in Third-Quarter Rail-Related Kickoffs

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Researched by Industrial Info Resources (Sugar Land, Texas)--More than $315 million in North American rail-related project kickoffs, including at least two crude-by-rail terminals, are set for the third quarter this year.

Industrial Info is tracking 11 rail projects that are set to kick off during the quarter, which runs from July through September. Four of the projects, valued at $110 million, are in the engineering phases, and the remaining ones are in the planning phases, where a variety of factors could alter their timing or outcome.

With a total investment value of $100 million, a crude-by-rail terminal located in Kerrobert, Saskatchewan, has the biggest price tag. TORQ Transloading (Calgary, Alberta) is working with Fortress Engineering Limited (Calgary) on the project, which includes installation of 50,000-barrel storage tanks--both heated and non-heated--with a total capacity of 500,000 barrels. The facility will be able to load 120-car trains, which will move both light and heavy crude to West Coast refiners. Completion is set for second-quarter 2016.

Another crude-by-rail terminal project, this one in Cabazon, California, has a total investment value of $70 million. The project by Questar Corporation (Salt Lake City, Utah) is accompanied by the recommissioning of the 96-mile pipeline to move 120,000 barrels per day (BBL/d) to Los Angeles area refineries. Completion is set for second-quarter 2016; the pipeline is a joint venture with Spectra Energy (NYSE:SE) (Houston, Texas).

Coming in at third place in value is a $60 million grassroot ethanol and diesel train-loading terminal in Deer Park, Texas. The project by Royal Vopak (Rotterdam, Netherlands) involves construction of 19 tanks with an initial capacity of 6 million barrels. It would include loading arms capable of loading 100 tank cars simultaneously. Atkins Global is serving as design engineer for the terminal, which is expected to be completed in third-quarter 2016.

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.