Watco subsidiary, Great Northern team up to develop Bakken-area rail terminal

Watco Terminal and Port Services and Great Northern Project Development L.P. (GNPD) recently announced they have partnered to develop a major multi-purpose rail transload terminal and rail-car maintenance shop near South Heart, N.D., on a BNSF Railway Co. line.

The South Heart Rail Terminal (SHRT) will target the energy industry and related service providers in the Bakken, Three Forks and Tyler shale plays, as well as other emerging oil and gas formations, Watco and GNPD officials said in a press release. A full-service rail-car maintenance facility to be operated by Watco Mechanical Services will be located on site to provide services to tank-car owners and lessees. Construction on the terminal is expected to start in first-half 2014 and operations are projected to begin in first-quarter 2015.

Located about 12 miles west of Dickinson, N.D., SHRT will offer rail, transload and rail-car maintenance services, as well as warehousing and materials storage services. The terminal will feature two double-loop tracks and 12 manifest tracks, and accommodate multiple unit trains, manifest business, and long- or short-term rail-car storage needs.

SHRT will receive and transload dry bulk commodities such as frac sand, ceramic proppants, cement, tubular pipe, oil field equipment, building products and other materials, Watco and GNPD officials said. In addition, the terminal will provide off-loading and storage for aggregates, asphalt and road materials. Watco Compliance Services will provide fleet management solutions, engineering and regulatory guidance services.

"We believe this facility will be a great compliment to our existing Bakken region customers, and will help build new relationships both in and out of the energy sector," said Watco Terminal and Port Services President Dan Smith.