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Aug. 16, 2012 /PRNewswire/ -- The
Alabama & Gulf Coast Railway (AGR), a RailAmerica Inc. (NYSE: RA) property, is now serving a new crude oil-unloading terminal developed by Genesis Energy, L.P. The
Walnut Hill, Fla., terminal, which started service on
Monday, Aug. 13, is designed to receive approximately 100-car unit trains of crude oil via the AGR from various shale regions in the U.S. and
Canada. After being transported in unit trains along the AGR, the crude oil will be off-loaded into fixed storage tanks and then injected into an existing Genesis Energy, L.P. pipeline for direct deliveries to one refinery customer and indirect delivery, through third-party common carriers, to multiple potential markets in the Southeast.
The partnership includes investments by RailAmerica to increase capacity on the AGR to support the anticipated growth in rail traffic to the terminal. The infrastructure investments will ensure continued support and rail capacity for other existing and growing customers in the area.
RailAmerica's industrial development team worked closely with Genesis Energy, L.P. to determine the unique location along the AGR that allows Genesis Energy, L.P. to make a direct connection into its pipeline system. The AGR also provides strategic physical connections with various Class I railroads, including BNSF Railway, CN, CSX Transportation, Kansas City Southern Railways and Norfolk Southern, to enable crude oil sourcing from nearly any region in the U.S. or
"Many industries, including the energy industry, have a growing need for efficient rail-based distribution terminals. There are a number of advantages for moving raw materials and finished products by rail versus other modes of transportation. The environmental benefits, energy-cost savings and overall efficiency of rail transportation are all compelling drivers of continued development on our short-line railroads like AGR," said
Gary Lewis, chief commercial officer for RailAmerica.
RailAmerica, Inc. owns and operates short-line and regional freight railroads in
North America, operating a portfolio of 45 individual railroads with approximately 7,500 miles of track in 28 U.S. states and three Canadian provinces.
About Genesis Energy
Genesis Energy, L.P. is a diversified midstream energy master limited partnership headquartered in
Houston, Texas. Genesis' operations include pipeline transportation, refinery services and supply and logistics. The Pipeline Transportation Division is engaged in the pipeline transportation of crude oil and carbon dioxide. The Refinery Services Division primarily processes sour gas streams to remove sulfur at refining operations. The Supply and Logistics Division is engaged in the transportation, storage and supply and marketing of energy products, including crude oil, refined products, and certain industrial gases. Genesis' operations are primarily located in
Florida and the
Gulf of Mexico.
Cautionary Note Regarding Forward-Looking Statements
Certain items in this press release and other information we provide from time to time may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including, but not necessarily limited to, statements relating to future events and financial performance. Words such as "anticipates," "expects," "intends," "plans," "projects," "believes," "appears," "may," "will," "would," "could," "should," "seeks," "estimates" and variations on these words and similar expressions are intended to identify such forward-looking statements. These statements are based on management's current expectations and beliefs and are subject to a number of factors that could lead to actual results materially different from those described in the forward-looking statements. RailAmerica, Inc. can give no assurance that its expectations will be attained. Accordingly, you should not place undue reliance on any forward-looking statements contained in this press release. Factors that could have a material adverse effect on our operations and future prospects or that could cause actual results to differ materially from RailAmerica, Inc.'s expectations include, but are not limited to, prolonged capital markets disruption and volatility, general economic conditions and business conditions, our relationships with Class I railroads and other connecting carriers, our ability to obtain railcars and locomotives from other providers on which we are currently dependent, legislative and regulatory developments including rulings by the Surface Transportation Board or the Railroad Retirement Board, strikes or work stoppages by our employees, our transportation of hazardous materials by rail, rising fuel costs, goodwill assessment risks, acquisition risks, competitive pressures within the industry, risks related to the geographic markets in which we operate; and other risks detailed in RailAmerica, Inc.'s filings with the Securities and Exchange Commission,
including our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q. In addition, new risks and uncertainties emerge from time to time, and it is not possible for RailAmerica, Inc. to predict or assess the impact of every factor that may cause its actual results to differ from those contained in any forward-looking statements. Such forward-looking statements speak only as of the date of this press release. RailAmerica, Inc. expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in its expectations with regard thereto or change in events, conditions or circumstances on which any statement is based.
INVESTOR CONTACTIra BergerVice President & TreasurerOffice: 904.999.5332
MEDIA CONTACTDonia CrimeCell: 404.271.1437Office: 904.645.6200