Kinder Morgan Energy Partners, L.P. (NYSE: KMP), the Tampa Port
Authority (TPA) and CSX Corporation (NYSE: CSX) today announced an
innovative, public-private partnership project that will bring ethanol
into the Tampa market more efficiently and safely via the nation’s first
ethanol unit train-to-pipeline distribution system.
The joint intermodal project involves the TPA building new rail track
and support infrastructure to handle 100-car unit train deliveries and a
multi-product unit train offloading yard at Hooker's Point, in the Port
of Tampa. The new rail facilities will allow CSX to transport ethanol
from Midwest producers to central Florida in 100-car unit trains that
will then be able to be offloaded within a 24-hour period into Kinder
Morgan’s Tampa Terminal, where it will be distributed to numerous blend
terminals and to new markets via pipeline.
We're happy to be part of a project that improves ethanol transportation
within the Port of Tampa and offers quick turnaround time to our
customers who are working to meet Central Florida’s growing demand for
ethanol," said Tom Bannigan, Kinder Morgan's products pipeline president.
This project will reduce the ethanol delivery carbon footprint through a
more efficient use of rail capacity and pipeline movements and is a
safer method of transport than trucks for local deliveries. Further, the
project promotes use of biofuels, known for having less impact to air
quality. Beyond the transport of fuels, however, the rail project will
also allow the TPA to move containers and other general cargoes directly
from dock to rail. Adjacent to the expanding Port of Tampa Container
Terminal, the new facility will create an on-dock unit train capability
for containers. This ultimately extends the Port’s container hinterland
potential, providing competitive access throughout CSX Intermodal’s
extensive network.
"This first-of-its-kind intermodal project represents an all around
win-win for the Port of Tampa, terminal operators, the consuming public
and the environment," said Richard Wainio, port director and chief
executive.
"CSX and its subsidiary TRANSFLO are pleased to participate in this
efficient solution to delivering ethanol to the Central Florida market,"
said Jon Haselwood, president-TRANSFLO terminal services. “This
cooperative venture also enhances future growth opportunities for CSX
and the Port of Tampa."
Kinder Morgan will expand its ethanol receipt and distribution system
within its terminal at the Port of Tampa and modify its 2-mile, 8-inch
Inter-Terminal Transfer (ITT) pipeline to move denatured ethanol from
its terminal to all Hooker's Point terminals for blending and
distribution to the market. The joint effort is expected to be
operational by September 2012. The TPA and CSX are investing more than
$10.9 million to construct the rail facilities to handle these cargo
operations.
About KMP
Kinder Morgan Energy Partners, L.P. (NYSE: KMP) is a leading pipeline
transportation and energy storage company in North America. KMP owns an
interest in or operates more than 28,000 miles of pipelines and 180
terminals. Its pipelines transport natural gas, gasoline, crude oil, CO2
and other products, and its terminals store petroleum products and
chemicals and handle such products as ethanol, coal, petroleum coke and
steel. KMP is also the leading provider of CO2 for enhanced oil recovery
projects in North America. One of the largest publicly traded pipeline
limited partnerships in America, KMP has an enterprise value of over $33
billion. The general partner of KMP is owned by Kinder Morgan, Inc.
(NYSE: KMI). Combined, KMI and KMP have an enterprise value of
approximately $55 billion. For more information please visit http://www.kindermorgan.com/.
About TPA
The Tampa Port Authority (www.tampaport.com)
administers Florida’s largest and one of the nation's most diversified
ports, handling a full array of cargoes. Also a premier cruise home
port, the Port of Tampa is the largest economic engine in west and
central Florida, generating nearly 100,000 jobs and billions of dollars
in economic impact annually. To learn more about the Port of Tampa,
visit http://www.tampaport.com/.
About CSX
CSX Corporation, based in Jacksonville, Fla., is one of the nation's
leading transportation companies, providing rail, intermodal and
rail-to-truck transload services. The company's transportation network
spans approximately 21,000 miles, with service to 23 eastern states and
the District of Columbia. CSX's network connects more than 240 short
line and regional railroads and more than 70 ocean, river, and lake
ports. More information about CSX Corporation and its subsidiaries is
available at http://www.csx.com/.
This news release includes forward-looking statements. Although
Kinder Morgan believes that its expectations are based on reasonable
assumptions, it can give no assurance that such assumptions will
materialize. Important factors that could cause actual results to differ
materially from those in the forward-looking statements herein are
enumerated in Kinder Morgan’s Forms 10-K and 10-Q as filed with the
Securities and Exchange Commission.