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Feb 16, 2010 9:12 AM

US Development Group LLC (USDG), a Houston TX-based developer of logistics and terminal facilities, announced that construction has begun on its new St James Rail Terminal, a crude oil and condensate unit train handling and distribution hub in the Gulf Coast region of Louisiana. The St James facility is US Development Group’s first crude oil/condensate terminal in a planned nationwide network of such terminals.

“We are delighted to announce our new rail terminal in St James. It has been developed in partnership with Plains All American Pipeline LP and is strategically located at a major crude/condensate logistics hub with access to both foreign and domestic oil supplies,” said Mike Day, vice-president of US Development Group. “The addition of unit rail connectivity will greatly enhance the capabilities of the St James hub to meet the expectations of major producers and refinery customers.”

Served by the Union Pacific Railroad, the St James Rail Terminal will be able to handle both manifest and unit train shipments serving various oil producing areas in the United States and Canada. The facility will have an initial capacity of 65,000 barrels per day. The new terminal will be connected via pipeline to an adjacent state-of-the-art crude oil/condensate storage terminal operated by Plains All American Pipeline. US Development Group’s St James facility will consist of several miles of rail track and a fully automated 26-spot rail rack, expected to be in full operation by June.