New ethanol terminals opening along major rail lines are giving producers, wholesalers and retailers an affordable way to receive shipments, compared with the more common method of trucking, which may be especially welcome as the cost of diesel fuel continues to climb.
“The decision to carry and offer ethanol-blended fuels has really been centered on the cost,” said Robert White, deputy director of the Ethanol Promotion and Information Council. “There is no doubt that there are markets where we would see more adoption if transportation costs dropped.”
Safe Handling Inc., a bulk product transportation and toll processing company, has opened western Pennsylvania’s first rail-to-truck ethanol transloading terminal in Mount Pleasant, Pa. The new terminal is located on three Class I railroad systems, including CSX Transportation, Canadian National and Norfolk Southern railroads, giving wholesalers the opportunity to purchase ethanol from a wide range of producers and choose a rail line based on the lowest offered rates. The terminal can receive up to 30 tanker cars at a time, each holding approximately 29,000 gallons of ethanol. The facility has the capacity to transload 180,000 gallons per day and has private siding capable of accommodating 145 railcars.