U.S. Development Group Begins Construction of Unit-Train Terminal for Crude Oil and Condensate

On Feb. 11, U.S. Development Group LLC (USDG), a Houston-based developer of logistics and terminal facilities, announced that construction had begun on its new St. James Rail Terminal, a crude oil and condensate unit-train handling and distribution hub located in the Gulf Coast region of Louisiana. The facility, which will include several miles of track and a fully automated 26-spot rail rack, is USDG's first crude oil/condensate terminal in a planned nationwide network of such terminals. It is expected to be in full operation by June 2010.

"We are delighted to announce our new rail terminal in St. James. It has been developed in partnership with Plains All American Pipeline, L.P. 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 USDG. "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."

The terminal will be served by the Union Pacific Railroad, the company said, and it will be able to handle both manifest and unit-train shipments serving oil-producing areas in the United States and Canada. The facility will have an initial capacity of 65,000 barrels per day. It will be connected via pipeline to an adjacent storage terminal operated by Plains All American Pipeline.