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7/12/2004



Rail News: Rail Industry Trends

KCS opens fuel loading facility in Oklahoma



In late June, Kansas City Southern opened a new diesel tank-car loading facility in Heavener, Okla. The facility supports a newly built fuel-supply pipeline designed to save the Class I seven cents per gallon — or $2 million annually — based on 3 million gallons purchased monthly.

Each month, the facility will handle more than 3.2 million gallons of fuel, half of which will be transloaded into tank cars for system-wide distribution. KCS officials chose the site to support the railroad's top three fuel consumption sites: Kansas City, Mo., Shreveport, La., and Heavener.

Constructed by Magellan Pipeline Co. and operated by KCS, the facility is designed to load four tank cars in less than four hours to improve asset utilization and ensure adequate fuel supplies are available to support operations, according to a prepared statement.

KCS officials are negotiating a contract to build a similar fuel-supply system near Shreveport by second-quarter 2005.


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