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10/7/2013


Rail News: Rail Industry Trends
CP-served crude facility still on track for late 2013 opening, Dakota Plains says



Dakota Plains Holdings Inc. today announced its Pioneer Terminal expansion project in New Town, N.D., remains on schedule for completion in late December.

The $50 million project involves the construction of a double loop track to accommodate two 120-car unit trains, a high-speed loading facility designed to handle 10 rail cars simultaneously, and transfer stations to receive crude oil from local gathering pipelines and trucks. Canadian Pacific will serve the loading facility.

"The Pioneer Terminal expansion will increase the throughput capacity nearly three-fold to 80,000 barrels of crude oil per day at a reduced operating cost," said Dakota Plains Chairman and Chief Executive Officer Craig McKenzie in a press release.

The first gathering system pipeline has been connected to the Pioneer Terminal and an agreement to receive oil has been executed, with crude expected to begin flowing in late October, Dakota Plains officials said. The company has appointed James Tate vice president of operations to oversee Pioneer Terminal operations.

Dakota Plains also announced that construction continues on a $15 million frac sand terminal the firm is jointly building in New Town with UNIMIN Corp. To open in May 2014 and be served by CP, the terminal will feature 8,000 tons of fixed sand storage space, an enclosed transloading facility and four ladder tracks. Interim frac sand transloading is expected to start in January, Dakota Plains officials said.

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