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Kansas City Southern and the Savage Cos. recently entered into a joint development agreement under which Savage will build, own and operate a multi-user rail terminal in Port Arthur, Texas, on property owned by the Kansas City Southern Railway Co. (KCSR)

To be served by KCSR, the Port Arthur Crude Terminal will be designed to accommodate unit trains carrying Bakken Shale crude oil and other crude supplies to Gulf Coast pipeline or refining consumers in Texas. The terminal will feature crude oil tank storage facilities.

Savage has begun engineering, design and permitting studies, and expects construction to begin later this year and conclude in second-quarter 2012.
 
KCS and Savage plan to work with other railroads to secure joint unit-train service design for the terminal. The parties also are exploring the potential of receiving other products at terminal, such as certain refined products in concert with KCS’ Mexican gateway.

"We believe the Port Arthur refinery complex and the readily accessible storage and distribution infrastructure in the area make this site an attractive destination for North American crude production,” said KCS President and Chief Executive Officer David Starling in a prepared statement.