Green Plains Inc. and Jefferson Gulf Coast Energy Partners, a subsidiary of Fortress Transportation and Infrastructure Investors LLC, have announced the formation of a joint venture (JV) to construct and operate an intermodal export and import fuels terminal at Jefferson's existing Beaumont, Texas terminal.
The 50/50 joint venture is expected to invest approximately US$55 million in its Phase I development, which will initially focus on storage and throughput capabilities for multiple grades of ethanol. Further development of the JV’s capabilities is expected to add the ability to manage multiple liquid products for import and export, including liquid hydrocarbons, vegetable oils and other non-liquid commodities.
"Once completed, we believe this terminal will provide Green Plains and other customers with significant advantages over other locations," said Todd Becker, President and CEO of Green Plains. "As demand for the products we produce continues to grow both globally and domestically, we want to create a world class solution to service our customers. Access to three Class I railroads, barges and inbound/outbound vessels positions the terminal with transportation and cost advantages that will make this a successful partnership. This terminal will be one of the most modern and efficient solutions in the US."
"We are excited to be partnering with one of the largest ethanol producers and traders in North America. This project will add the necessary infrastructure at Jefferson Beaumont to distribute ethanol to markets worldwide," said Greg Binion, President and CEO of Jefferson. "Green Plains Trade Group will be the anchor customer of the joint venture, and the terminal is expected to serve other ethanol exporters as well. We are confident that Jefferson's multimodal capabilities and sustainable cost advantaged logistics will contribute to the success of this JV."
"This JV will diversify the existing facility and complement the public/private partnership Jefferson enjoys with the Port of Beaumont. We expect it to be one of the most versatile ethanol hubs in the country and deliver additional economic benefit to the area," said Chris Fisher, Port Director and CEO of the Port of Beaumont.
The JV’s terminal will have direct access to multiple transportation options including Aframax vessels, inland and coastwise barges, trucks, and unit trains with direct mainline service from the Union Pacific, BNSF and KCS railroads. Phase I development will leverage existing infrastructure at the Jefferson terminal in Beaumont, and is expected to include approximately 500 000 bbls of storage with expansion potential of up to 1 000 000 bbls. Construction of Phase I is currently expected to take approximately nine months with completion projected in the 2Q17.
Green Plains may offer its interest in the JV to its master limited partnership, Green Plains Partners LP once the commercial development has been completed.
Adapted from press release by Francesca Brindle
Read the article online at: https://www.tanksterminals.com/storage-tanks/17062016/jefferson-terminals-logistics-forms-jv-green-plains-import-export-ethanol-fuel-terminal-texas-3536/
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