Kinder Morgan invests $43 million to expand terminal services

Jan. 7, 2003
Kinder Morgan Energy Partners LP, Houston TX, through its subsidiary, Kinder Morgan Bulk Terminals Inc (KMP), has announced a $43 million investment in

Kinder Morgan Energy Partners LP, Houston TX, through its subsidiary, Kinder Morgan Bulk Terminals Inc (KMP), has announced a $43 million investment in two transactions that expand the company's terminals business.

KMP acquired long-term lease contracts from New York-based MJ Rudolph Corporation to operate four bulk facilities at major ports along the East Coast and in the southeastern United States.

The acquisition also includes the purchase of certain assets that provide stevedoring services at these locations. In addition, KMP purchased loading equipment from Stevedoring Services of America (SSA) that is currently based at an existing KMP bulk terminal in Louisiana.

Included in the MJ Rudolph acquisition is a fleet of eight floating cranes, which serve various terminal locations at the ports of New York and Baltimore, along the Delaware River in Camden NJ and in Tampa Bay FL. Combined, these facilities transload nearly 4 million tons annually of products such as fertilizer, iron ore, and salt, according to company information.

In a separate transaction, KMP acquired from SSA four floating cranes that Kinder Morgan had been leasing at its International Marine Terminal (IMT) in Port Sulphur LA. KMP acquired a two-thirds interest in the IMT facility during the first quarter of 2002. The terminal is a multi-purpose import and export facility, which handles approximately 7 million tons annually of bulk products including coal, petroleum coke, and iron ore.

KMP terminals handle over 55 million tons of coal and other dry-bulk materials annually and have a liquids storage capacity of approximately 55 million barrels for petroleum products and chemicals.