Intermodal Briefs: Casper Rail Terminal, Port of Virginia

Written by Carolina Worrell, Senior Editor
Casper Terminal in Wyoming

Casper Terminal in Wyoming

USD Partners LP announces the closing of its Casper rail terminal sale. Also, the Port of Virginia (POV) invests in inland terminals to expand capabilities and “ensure efficiency and competitiveness.”

A wholly owned subsidiary of USD Partners LP announced April 3 that on March 31, it closed the previously announced sale of the Casper rail terminal in Wyoming to South 49 Holdings Ltd., a member of the Midstream Energy Partners group of companies, for a cash purchase price of approximately $33.0 million, subject to customary adjustments.

Piper Sandler & Co. served as the exclusive financial advisor to USD Partners LP, in connection with the transaction. Gibson, Dunn & Crutcher LLP served as legal advisor.

The Casper, Wyo., terminal is a crude oil storage, blending and railcar loading terminal, which is served by BNSF, and currently offers six customer-dedicated storage tanks with 900,000 Bbls of total capacity and unit train-capable railcar loading capacity in excess of 100,000 Bpd (14 railcar loading positions and ability to hold four-unit trains simultaneously).

POV announced April 4 that it is investing more than $18 million in Virginia Inland Port (VIP) and Richmond Marine Terminal (RMT) to “expand capacity, reconfigure some areas of operation and ensure the terminals are ready for the future.”

According to POV, work at both sites is under way and the investment is part of a larger, $1.4 billion Gateway Investment Program that focuses on “expanding the port’s capabilities, modernizing functions and ensuring long-term competitiveness.”

POV is investing $15 million at VIP, an intermodal ramp in Front Royal located at the intersection of I-81 and Norfolk Southern’s (NS) Crescent Corridor rail route, to expand and reconfigure the terminal’s rail operation and its container stack yard. Work includes building three new rail sidings and the installation of backbone infrastructure for technology. The terminal, POV says, will also be getting four rubber-tire gantry cranes, which are being repurposed from one of the port’s container terminals in the Norfolk Harbor and will allow VIP to retire some older, less-efficient equipment. The project is expected to be completed in 2024, according to the port.

POV is investing $3 million at RMT, which is located on the James River and has direct access to I-95 and I-64 nearby. Improvements are being made to the terminal’s main gate and a drop-lot for motor carriers is being developed. The work at the gate, POV says, will allow faster processing of trucks leaving/entering the terminal and make way for the installation of two new scales. The fenced, 40-space drop-lot will give truckers an after-hours option for leaving containers in a secure area adjacent to the terminal; technology infrastructure is also being installed. According to POV, the project will be ready in early 2024.

“VIP and RMT are critical to our overall efficiency and our ability to maintain fluidity at primary container terminals in the Norfolk Harbor,” said Virginia Port Authority CEO and Executive Director Stephen A. Edwards. “Because of their strategic locations along important inland cargo corridors, we are able to move cargo closer to its end user, in terms of imports, and exporters can position their containers at these central collection points for loading onto barge and rail.”

“We are investing in our inland capabilities now so we will be ready when our deeper and wider shipping channel opens in 2024,” Edwards added. “We’re also getting ready to begin renovating and modernizing the North Berth at Norfolk International Terminals, so the ability to receive cargo and then push it inland to VIP and RMT during construction is going to be key to maintaining our efficiency.”

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