JACKSONVILLE, Fla. — The Alabama & Gulf Coast Railway (AGR), a RailAmerica Inc. company, is now serving a new crude oil-unloading terminal developed by Genesis Energy L.P.
The Walnut Hill, Fla., terminal, which started service on Aug. 13 is designed to receive approximately 100-car unit trains of crude oil via the AGR from various shale regions in the U.S. and Canada. After being transported in unit trains along the AGR, the crude oil will be off-loaded into fixed storage tanks and then injected into an existing Genesis Energy, L.P. pipeline for direct deliveries to one refinery customer and indirect delivery, through third-party common carriers, to multiple potential markets in the Southeast.
The partnership includes investments by RailAmerica to increase capacity on the AGR to support the anticipated growth in rail traffic to the terminal. The infrastructure investments will ensure continued support and rail capacity for other existing and growing customers in the area.
RailAmerica’s industrial development team worked closely with Genesis Energy, L.P. to determine the unique location along the AGR that allows Genesis Energy, L.P. to make a direct connection into its pipeline system. The AGR also provides strategic physical connections with various Class I railroads, including BNSF Railway, CN, CSX Transportation, Kansas City Southern Railways and Norfolk Southern, to enable crude oil sourcing from nearly any region in the U.S. or Canada.
“Many industries, including the energy industry, have a growing need for efficient rail-based distribution terminals. There are a number of advantages for moving raw materials and finished products by rail versus other modes of transportation. The environmental benefits, energy-cost savings and overall efficiency of rail transportation are all compelling drivers of continued development on our short-line railroads like AGR,” said Gary Lewis, chief commercial officer for RailAmerica.