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Aug 20, 2012 11:48 AM

The Alabama & Gulf Coast Railway (AGR), a RailAmerica Inc. property, is now serving a new crude oil-unloading terminal developed by Genesis Energy LP. The Walnut Hill FL terminal, which started service August 13, is designed to receive approximately 100-car unit trains of crude oil via the AGR from various shale regions in the United States and Canada.

The crude oil will be off-loaded into fixed storage tanks and then injected into an existing Genesis Energy 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 to determine the best location along the AGR that allows Genesis Energy to make a direct connection into its pipeline system. The AGR also provides strategic physical connections with various Class I railroads, including BNSF Railway, Canadian National, CSX Transportation, Kansas City Southern Railways and Norfolk Southern, to enable crude oil sourcing from nearly any region in the United States or Canada.