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7/24/2003



Rail News: Rail Industry Trends

Focus on fuel: KCS to use pipeline to cut diesel costs




Kansas City Southern recently signed a 10-year agreement with Williams Pipeline Group under which the supplier next year will build and maintain a pipeline to the railroad's Heavener, Okla., fueling facility.


The pipeline will enable KCS to purchase Gulf Coast fuel — which historically costs less compared with other diesel sources — as well as "maintain an adequate supply in storage tanks without using tank cars, minimize supply-chain interruptions and significantly reduce transportation costs," according to a prepared statement.


Most KCS unit trains move through Heavener — a key link in the railroad's network. The Class I is determining whether to build a tank-car loading facility in Heavener to reduce transit times to Kansas City, Mo., and Shreveport, La.


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