KCS, Global Partners to build crude unit-train terminal in Texas

Kansas City Southern and Global Partners L.P. today announced plans to develop a unit-train terminal in Port Arthur, Texas.

To be constructed on a 200-acre parcel Global Partners will lease from KCS, the waterborne terminal initially will handle heavy crude coming from Western Canada. Construction is contingent on Global Partners' receipt of all necessary permits.

"The addition of a crude destination terminal on the U.S. Gulf Coast will broaden and strengthen our logistics network," said Global Partners President and Chief Executive Officer Eric Slifka in a press release. "Situated within a 100-mile radius of nearly 5 million barrels of Gulf Coast refining capacity and an expansive pipeline network, Port Arthur is a prime destination for crude and refined products."

The terminal initially will feature 340,000 barrels of storage capacity. After unit-train service begins, the facility is expected to process up to two unit trains per day.

"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 U.S. Gulf Coast," said KCS President and Chief Executive Officer David Starling.