CN Rail, Arc to build Alabama oil unloading terminal

Mon Nov 5, 2012 1:33pm EST
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* Facility will initially handle 40 tank cars of crude daily

* Capacity to expand up to 120 tank cars daily

* CN could move 60,000 carloads of crude in 2013

TORONTO, Nov 5 (Reuters) - Arc Terminals LP said on Monday it is working with Canadian National Railway to build a rail tank-car unloading terminal in Mobile, Alabama, for Canadian oil shipments destined for Gulf Coast refineries.

The facility, scheduled to begin operations in June 2013, is expected to initially handle 40 tank cars of Western Canadian heavy and Bakken light crude oil daily. It will have a maximum capacity of 75,000 barrels, or 120 tank cars, a day.

The terminal will also load condensate into the tank cars for backhaul by CN, Canada's largest rail carrier, to Western Canadian oil producers.

Financial terms of the deal were not disclosed, nor did the companies say how they will work together to build the terminal.

"The rail transload terminal will handle heavy crude oil from Western Canada and light crude oil from the Bakken basin via CN, which will provide Canadian producers single-haul service to our Mobile destination," said Arc Terminals President John Blanchard.

Arc Terminals owns and operates 11 petroleum product terminals in the United States with a combined capacity of about 3.6 million barrels.   Continued...