Savage Companies, Salt Lake City UT, announced that construction is underway for a multi-user rail terminal served by the Burlington Northern Santa Fe Railway in Trenton ND, bringing delivery of crude oil by rail from the Bakken shale oil formation.
“This facility is a win-win for producers who want to get their product to specific markets and for refiners who want access to premium light sweet crude at competitive rates," said Allen Alexander, chief executive officer of Savage. "Rail is a great option for transporting crude oil, especially given that production is forecasted to exceed current distribution alternatives.”
The 270-acre site will include rail infrastructure, as well as planned space for oil field material storage, and receiving capability for frac sand and other materials. Based on current interest levels, and active negotiations, Savage expects to fully subscribe the initial capacity of the Trenton Railport by fall of this year.
The Trenton Railport is slated to be operational by the second quarter of 2012, and will be managed by Savage's Railway and Industry Solutions Group, which oversees more than 50 specialty rail services and transloading terminals throughout the United States.