Savage expands crude logistics services to Western Canada

Jan. 24, 2014

Savage has expanded crude-by-rail and truck transportation services in Western Canada. These services are being offered at two new terminals in Unity SK and Northern Sunrise County in Alberta.

The combined crude-by-rail transload capacity of these terminals is 30,000 barrels per day (bpd) with direct access to Class 1 rail service. There is a shortage of outbound access for crude produced in Western Canada, making these new terminals and expanded services in high demand by the market.

Savage is now operating the Unity Petroleum Rail Terminal in Unity. This facility provides direct access to the CP Railway and has 45 rail car spots. The terminal currently has the capacity to handle 5,000 bpd/275 cars per month. Savage is currently transloading crude on a manifest basis with near-term expansion to handle 10,000 bpd/550 cars per month. Savage also has the capability to provide truck transportation for crude oil in and around the Unity region.

Savage has worked closely with the county of Northern Sunrise and will begin operations at a new terminal near Reno AB starting February 1. The Northern Sunrise Crude Terminal provides direct access to the CN railroad. The terminal’s first phase transloading capacity is 25,000 bpd/1,500 cars per month of crude on a manifest basis with the second phase allowing unit train service. The Northern Sunrise terminal offers 160 railcar storage spots with inbound and outbound track access. Savage is providing transload services--direct truck to rail--and has the ability to provide crude truck transportation in and around the area.

“These terminals will provide Western Canadian crude, bound for key refinery markets, access to rail transportation,” said Nathan Savage, Senior Vice President, Oil & Gas - Midstream Solutions Group for Savage. “Oil producers in this region often say their crude is “land locked” due to a lack of transportation options. We believe this new service will help customers in Western Canada solve these logistics challenges.”

The Savage terminals in Unity and Reno provide rail car switching, railcar spotting, transloading, and car storage related to crude handling for rail transport. Savage also can provide truck transportation for crude. Both of these terminals offer manifest services, and, as market demand increases, unit train capacity and crude tank storage will be added. The transloading services and rail line connections offered at these terminals provide crude coming from Western Canada the flexibility to be delivered to East Coast, West Coast, and Gulf Coast refinery markets. These Savage terminals also are well-positioned to meet the growing needs of inbound or outbound oilfield materials, as customer needs dictate.