September 19, 2011 [StockMarketsReview] - Kinder Morgan Energy Partners, L.P., the Tampa Port Authority (TPA) and CSX Corporation today announced an innovative, public-private partnership project that will bring ethanol into the Tampa market more efficiently and safely via the nation’s first ethanol unit train-to-pipeline distribution system.
The joint intermodal project involves the TPA building new rail track and support infrastructure to handle 100-car unit train deliveries and a multi-product unit train offloading yard at Hooker’s Point, in the Port of Tampa. The new rail facilities will allow CSX to transport ethanol from Midwest producers to central Florida in 100-car unit trains that will then be able to be offloaded within a 24-hour period into Kinder Morgan’s Tampa Terminal, where it will be distributed to numerous blend terminals and to new markets via pipeline.
“We’re happy to be part of a project that improves ethanol transportation within the Port of Tampa and offers quick turnaround time to our customers who are working to meet Central Florida’s growing demand for ethanol,” said Tom Bannigan, Kinder Morgan’s products pipeline president.
This project will reduce the ethanol delivery carbon footprint through a more efficient use of rail capacity and pipeline movements and is a safer method of transport than trucks for local deliveries. Further, the project promotes use of biofuels, known for having less impact to air quality.
Beyond the transport of fuels, however, the rail project will also allow the TPA to move containers and other general cargoes directly from dock to rail. Adjacent to the expanding Port of Tampa Container Terminal, the new facility will create an on-dock unit train capability for containers. This ultimately extends the Port’s container hinterland potential, providing competitive access throughout CSX Intermodal’s extensive network.
“This first-of-its-kind intermodal project represents an all around win-win for the Port of Tampa, terminal operators, the consuming public and the environment,” said Richard Wainio, port director and chief executive.
“CSX and its subsidiary TRANSFLO are pleased to participate in this efficient solution to delivering ethanol to the Central Florida market,” said Jon Haselwood, president-TRANSFLO terminal services. “This cooperative venture also enhances future growth opportunities for CSX and the Port of Tampa.”
Kinder Morgan will expand its ethanol receipt and distribution system within its terminal at the Port of Tampa and modify its 2-mile, 8-inch Inter-Terminal Transfer (ITT) pipeline to move denatured ethanol from its terminal to all Hooker’s Point terminals for blending and distribution to the market. The joint effort is expected to be operational by September 2012. The TPA and CSX are investing more than $10.9 million to construct the rail facilities to handle these cargo operations.
