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Aug 27, 2009 2:24 PM

US Development Group LLC (USDG), an industry leader in ethanol handling and distribution terminals, will begin construction on the West Colton Rail Terminal, a new ethanol hub in the Inland Empire area of Southern California.

Construction of the facility will occur in two phases. The first phase in Rialto CA will consist of a manifold transfer system that will begin receiving and offloading ethanol railcars in autumn 2009. The second phase includes full unit train capability and ethanol storage. It will be on an adjacent site in Colton CA and is scheduled for completion in mid-2010. The Phase One facility will have the capacity to handle current Colton area demand for ethanol, plus that required to meet the mandated increase to a 10% blend in gasoline in 2010.

The West Colton Rail Terminal will be served by the Union Pacific Railroad and will be less than a mile from gasoline blending terminals that serve the greater San Bernardino and Riverside County-Inland Empire region. The terminal will feature dedicated ethanol storage, 100-railcar high-speed offloading capability, and outbound truck and pipeline capabilities.

Increased demand for ethanol has led to an increase in railcar shipments from Midwest ethanol production plants during the past year. The USDG terminal in Colton represents a key element of the supply chain to distribute this renewable commodity throughout the region.

USDG companies are engaged in rail logistics terminaling, as well as designing, developing, owning, and managing large-scale ethanol rail logistic centers in the United States. Besides its newest project in Colton, USDG has major ethanol hub facilities in Linden NJ, Baltimore MD, Dallas TX, and Houston TX.