May 9, 2006 at 1:01 am #4202
Houston Business Journal – April 17, 2006
Kinder Morgan Energy Partners LP has bought terminal assets from US Development and A&L Trucking LP in two separate transactions for a combined $63 million. The assets include two rail terminals and a dry-bulk storage and loading operation in Carson, Calif., and in Deer Park.
Houston-based Kinder Morgan (NYSE: KMP) says the terminals are strategically located and complement existing facilities in the Los Angeles and Houston areas. They will provide services to “move growing supplies of ethanol into high-demand markets and handle bulk product imports,” says KMP Terminals President Jeff Armstrong.
The acquisitions are expected to be immediately accretive to cash available for distribution to KMP unitholders.
In purchasing USD’s Lomita rail terminal in Carson, Kinder Morgan says it now owns the highest volume rail ethanol terminal on the West Coast. The terminal has the capability to receive and offload as many as 100 railcars within a 24-hour period, according to Kinder Morgan, which says that the quick turnaround time makes the facility especially valuable for refiners and producers working to meet California’s increasing demand for ethanol.
Kinder Morgan also purchased the USD rail facility located in Deer Park, which offers loading, storage and staging services for up to 900 cars at a time.
In addition, an adjacent petcoke terminal that Kinder Morgan purchased in 2005 gives the rail facility access to the Houston Ship Channel for the first time, creating opportunities to expand and offer additional services. Kinder Morgan says the acquisition maximizes the value of the company’s existing deepwater terminal by providing customers with both rail and vessel transportation options for bulk products.
As part of the A&L Trucking purchase, Kinder Morgan acquired equipment and infrastructure for storing and loading bulk steel at a 30-acre site along the Houston Ship Channel leased through the Port of Houston. Kinder Morgan also owns a nearby bulk facility purchased from General Stevedores in 2005.
In total, Kinder Morgan owns or operates more than 27,000 miles of pipelines and approximately 145 terminals.
The general partner of KMP is owned by Kinder Morgan Inc. (NYSE: KMI), an energy transportation, storage and distribution firm. Combined, the two companies have an enterprise value of more than $35 billion.
May 9, 2006 at 1:08 am #7604
KM adding two rail terminals and the USD rail terminal in Deer Park (can hold 900 rail cars at time (~9000 WST)) will have direct access to the Houston Ship channel using the nearby Kinder Morgan Petcoke terminal this combination should reduce the cost for some rail based moves for FOB vessel moves. Kinder Morgan is the largest petcoke handler in the world – moving about 18 million tons/year for its various clients through its petcoke handling terminals.
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