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Rail Industry Trends Article
Crude oil: Phillips 66 lands 3PL pacts; Savage hub wins top terminal honor

Rail Industry Trends
Phillips 66 recently reached agreements with several third-party logistics providers regarding rail loading/terminal and pipeline services for crude oil.

The company entered into a three-year pact with Enbridge Rail (North Dakota) L.L.C. for rail-car loading of Bakken Shale crude at Enbridge's Berthold, N.D., terminal beginning in May. The crude oil will be delivered to Phillips 66 refineries on the West and East coasts, and in the future might be sent to Gulf Coast refineries.

Phillips 66 also landed a five-year deal with Targa Resources Partners L.P. to provide rail unloading and barge loading services in Tacoma, Wash. Canadian or U.S. crude will be unloaded from rail cars at Targa's Tacoma terminal and transloaded onto barges for delivery to a Phillips 66 Ferndale, Wash., refinery. Currently, the terminal is capable of receiving manifest trains, but as volumes ramp up it could transition to unit trains in summer, Phillips 66 officials said in a press release.

Finally, Phillips 66 signed an agreement with Magellan Midstream Partners L.P. to transport crude via Magellan's pipelines near Phillips 66's Ponca City, Okla., refinery.

Meanwhile, Savage's Bakken hub in Trenton, N.D., was named the Terminal of the Year for the Rocky Mountain Region by Oil & Gas Awards Ltd. The company's awards recognize advancements in environmental stewardship, efficiency, innovation, corporate social responsibility, and health and safety regarding crude oil and natural gas.

Served by BNSF Railway Co., the Savage unit-train terminal overcame complex logistical challenges and implemented new technology, according to Oil & Gas Awards.


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