Construction is nearing completion on the Tampa Gateway Rail terminal, a
collaborative project undertaken by CSX Corporation (NYSE: CSX), the
Tampa Port Authority (TPA) and Kinder Morgan Energy Partners, L.P.
(NYSE: KMP). This innovative intermodal project, announced last year as
a public-private partnership, will not only bring fuel-grade ethanol
into the Tampa market more efficiently and safely via the nation's first
ethanol unit train-to-refined products pipeline distribution system, but
also provide Florida its first on-dock unit train intermodal container
capability.
For its part, the TPA built new rail track and support infrastructure to
handle 96-car unit train deliveries, as well as a multi-product unit
train offloading yard at Hooker's Point, in the Port of Tampa. Kinder
Morgan invested in new pipelines to transport the ethanol from the rail
offloading facilities to its Tampa terminal where it can be distributed
to other Tampa terminals for blending or transported to Orlando for
gasoline blending at Kinder Morgan's Orlando terminal.
"We're very pleased to be a part of an innovative and efficient
logistics solution to providing Tampa and central Florida markets with
ethanol," said Tom Bannigan, Kinder Morgan's products pipeline
president. "We expect this facility to readily accommodate anticipated
growth in central Florida biofuels demand."
Designed to also handle intermodal containers and other general cargo
traffic, the new Tampa Gateway Rail facility is adjacent to the Port's
container terminal. It provides direct access to the CSX rail network,
enhancing the Port's container rail service offering. The Port of Tampa
Container Terminal, operated by Ports America, currently encompasses 40
acres, with phased expansion planned to over 160 acres on adjacent land
owned by the Tampa Port Authority and ready to be developed as the
business grows. The terminal is currently served by three rail mounted
gantry cranes and a 100 ton mobile harbor crane with 2800 linear feet of
berth and 43 water depth alongside the berth and in the channel.
The Gateway Rail project will reduce the ethanol delivery carbon
footprint through a more efficient use of rail capacity and pipeline
movements, while also easing truck traffic. Further, the project
promotes use of biofuels, known for having less impact to air quality.
"This is a tremendous intermodal project that will deliver benefits to
multiple customers and commodities throughout the supply chain, as well
as the environment," said Charles Klug, interim port director and chief
executive. "Just as important is the spirit of absolute partnership that
went into the project from the beginning."
"CSX and its subsidiary TRANSFLO are pleased to participate in this
efficient solution to deliver ethanol to the Central Florida market,"
said Clarence Gooden, executive vice president and chief commercial
officer, CSX. "This cooperative venture also enhances future cargo
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 in late fall 2012. The TPA and CSX are investing more than
$10.9 million to construct and open the rail facilities to handle these
cargo operations.
An on-site inauguration ceremony, slated for September 25, will include
key partners and stakeholders hammering ceremonial spikes into the
ground, including Florida Congresswoman Kathy Castor and Florida
Department of Transportation Secretary Ananth Prasad. Other
distinguished representatives will include Clarence Gooden, executive
vice president and chief commercial officer, CSX; Tom Bannigan,
president, products pipelines, Kinder Morgan; Jim Lelio, director,
business development and national biofuels manager; William "Hoe" Brown,
chairman, Tampa Port Authority; Charles Klug, interim port director and
chief executive, Tampa Port Authority; and Zelko Kirincich, deputy port
director of operations, Tampa Port Authority.
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, including the Port of Tampa. More information about CSX
Corporation and its subsidiaries is available at http://www.csx.com/.
About KMP
Kinder Morgan Energy Partners, L.P. (NYSE: KMP) is a leading pipeline
transportation and energy storage company and one of the largest
publicly traded pipeline limited partnerships in America. It owns an
interest in or operates more than 53,000 miles of pipelines and 180
terminals. The general partner of KMP is owned by Kinder Morgan, Inc.
(NYSE: KMI). Kinder Morgan is the largest midstream and the third
largest energy company in North America with a combined enterprise value
of approximately $100 billion. It owns an interest in or operates
approximately 75,000 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. KMI owns the
general partner interest of KMP and El Paso Pipeline Partners, L.P.
(NYSE: EPB), along with limited partner interests in KMP, Kinder Morgan
Management, LLC (NYSE: KMR) and EPB. For more information please visit 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, supporting 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/.
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.
