A&R, UP Railroad collaborating on plastics export project

Aug. 12, 2015

A&R Logistics (A&R) announced it has entered into a collaboration agreement with Union Pacific Railroad (UP) to co-develop an export supply chain solution for the US plastic resin industry. The project will be aimed at establishing a transportation and plastics packaging facility near UP's Dallas Intermodal Terminal to handle the anticipated significant increase in export plastic resins.

Commenting on the agreement, Mark R Holden, A&R Logistics chief executive officer, said: "Approximately $50 billion is expected to be invested in the US over the next 10 years by the plastics industry to expand production. Thanks to growth in domestic shale gas production, the US plastics industry is benefitting from feedstocks derived largely from natural gas. As a result, the export of plastic resins is expected to surge over the next decade. Net exports are expected to more than triple, growing from $6.5 billion in 2014 to $21.5 billion by 2030.”

Holden added: "A&R looks to develop a state-of-the art packaging facility and transportation related product to provide what we believe will be the most flexible and efficient supply chain for the export of plastic resins in the United States."