"This strategic project further advantages our Albany terminal as a low-cost, logistically situated asset within our supply and distribution chain," said Global Partners' President and Chief Executive Officer Eric Slifka. "The terminal and rail facility serve as an advantaged distribution point for our network of terminals throughout the Northeast."
Global Partners' estimated cost for this project is approximately $5 million. The company will be responsible for enhancements to its terminal, including the refurbishment of two refined petroleum product tanks to store ethanol. CP will be responsible for construction of the rail car unloading facility at Kenwood Yard. CP has single-line haul capability from the U.S. Midwest to water on the U.S. Eastern seaboard. In a separate and complementary project, Global Partners also is converting two distillate storage tanks to gasoline storage at the Albany facility.
"Connecting our terminal to CP's Kenwood Yard provides us with another supply option into and out of the Albany terminal, thereby creating an additional revenue opportunity and further enhancing our operating efficiencies," Slifka said. "The project diversifies our product base and enables us to meet the market's growing need for ethanol in the Northeast."
These initiatives, together with earlier tank rehabilitations completed by Global Partners, will increase the storage capacity at the Albany terminal from approximately 737,000 barrels when the company acquired it in May 2007 to approximately 1.2 million barrels.