Savage plans to develop a new crude-by-rail transload terminal to connect supply chains for transporting Uinta Basin crude oil from wellheads to refinery markets across North America.
The new terminal, located near Wellington in Carbon County, Utah, will unload Uinta Basin yellow and black wax crude from tanker trucks into two heated tanks, Savage reported. The crude will then be loaded into unit trains of insulated rail cars, via two rail loops, for delivery to end-market destinations.
“Utah has a long history of contributing to the U.S. energy supply, and this new transload terminal will build on that legacy,” Utah Gov. Spencer Cox said in a news release. “By unleashing Utah’s energy to markets across North America, this project not only strengthens our state’s economy but also enhances energy security for the entire nation.
“This is a win for our producers, our rural communities, and America’s energy independence.”
Jason Ray, president of Savage Infrastructure, concurred: “Developing a new Savage transload terminal in Wellington will allow Uinta Basin producers to increase their production and access new markets without the logistical challenges of long-haul trucking or waiting on other logistical solutions requiring long lead times.
“We believe this transload terminal will be the most efficient and cost-advantaged terminal in the area for producers and also for refineries seeking Uinta Basin crude.”
The Savage Wellington transload terminal is strategically located with connections to both Union Pacific and BNSF railroads, which will provide customers with access to the national rail network and every refinery center in the United States.
“We’re excited to develop this new market solution,” said Phillip Hoskins, Savage vice president of business development. “We’ve completed the purchase of 277 acres of land zoned for heavy industrial use and obtained necessary permits to start operations. The terminal engineering and design have been completed and we are working closely with the railroads to obtain final design approval.”
The Wellington terminal is part of the growing Savage transload network of over 50 transload terminals across North America, and will also be capable of handling other industrial bulk and liquid commodities to support regional growth. Located about a half mile north of the Savage energy terminal in Price, Utah, the new Wellington terminal will be developed within the Utah Inland Port Authority’s Castle Country project area, supporting the state’s objectives for growing strategic infrastructure, enhancing energy access, expanding growth in rural communities and driving sustainable development in Carbon and Emery Counties.
“The Port is proud to support Savage as they develop this new facility within the boundaries of our Castle Country project area,” said Ben Hart, Utah Inland Port Authority executive director. “Projects like this are critical to elevating Utah's logistics system and spurring rural economic growth.”