Friday, January 24, 2014

Savage expands crude oil logistics services in Western Canada

Written by  William C. Vantuono, Editor-in-Chief
Savage, a provider of bundled supply chain management services for electric power generation, coal production, oil and gas, refining, agriculture, chemical, mining and manufacturing, has expanded its CBR (crude by rail) and truck transportation for crude oil services in Western Canada.

These services are being offered at two new terminals in Unity, Sask., and Reno, Alberta. The combined crude-by-rail transload capacity of these terminals is 30,000 barrels per day (bpd), with direct access to Class I rail service. “There is a shortage of outbound access for crude produced in Western Canada, making these new terminals and expanded services in high demand by the market,” Savage said.

Savage is now operating the Unity Petroleum Rail. This facility provides direct access to Canadian Pacific and has 45 railcar spots. The terminal currently has the capacity to handle 5,000 bpd and 275 cars per month. Savage is currently transloading crude on a manifest basis with near-term expansion to handle 10,000 bpd and 550 cars per month. Savage said it also has the capability to provide truck transportation for crude oil in and around the Unity region.

Savage has worked closely with the county of Northern Sunrise in Alberta and will begin operations at the new Northern Sunrise Crude Terminal near Reno, starting Feb. 1, 2014. The terminal provides direct access to CN; its first-phase transloading capacity is 25,000 bpd and 1,500 cars per month of crude on a manifest basis, with the second phase allowing unit train service. The Northern Sunrise terminal offers 160 railcar storage spots with inbound and outbound track access. Savage is providing transload services (direct truck to rail) and has the ability to provide crude truck transportation in and around the area.

The Savage terminals in Unity and Reno provide railcar switching and spotting, transloading, and car storage related to crude handling for rail transport, as well as truck transportation for crude. Both of these terminals offer manifest services, and, as market demand increases, unit train capacity and crude tank storage will be added, Savage said. The transloading services and rail line connections offered at these terminals provide crude coming from Western Canada the flexibility to be delivered to East Coast, West Coast, and Gulf Coast refinery markets.

“These terminals are well-positioned to meet the growing needs of inbound or outbound oilfield materials, as customer needs dictate,” said Savage Senior Vice President, Oil & Gas-Midstream Solutions Group Nathan Savage. “They will provide Western Canadian crude, bound for key refinery markets, access to rail transportation. Oil producers in this region often say their crude is ‘land locked’ due to a lack of transportation options. We believe this new service will help customers in Western Canada solve these logistics challenges.”