Shale Daily / NGI All News Access

Permian Basin Getting New Rail Park

Construction is expected to begin "shortly" on the 550-acre Permian Rail Park in Texas about six miles west of Big Spring and 30 miles east of Midland, developers said.

The Permian Rail Park, which is being developed by Frontier Logistics and Kyle Kinsel, would be "in the heart of" the Wolfcamp and Cline shale plays in the Permian Basin and within 100 miles of the Delaware Basin's Bone Spring Shale, Avalon Shale and Wolfbone play, Frontier and Kinsel said.

"The Permian Rail Park will serve industrial tenants and users of all sizes, ranging from large distribution and manufacturing centers to small rail users," the developers said. "It will also serve oil field service and oil midstream companies looking to transport products to and from the Permian Basin."

The park would be able to handle multiple unit trains (those made up of a single type of car) per day and would provide manifest rail service (trains made up of a variety of car types) as well. "In addition, parcel sales, land leases and build-to-suit services will be available, all with full rail access," the developers said.

The site was chosen because it is within four miles of 10 major pipelines that are used to carry petroleum products to and from refineries. "This makes it an ideal location for a crude oil storage, blending or processing facility," the developers said, adding that the park is expected to become a "logistical hub" for the Cline and Wolfcamp plays.

The Permian Rail Park is expected to be operational by the second quarter of 2014. Frontier and Kinsel are the lead developers of Mission Rail Park south of San Antonio, TX, which is on track to begin operation serving the Eagle Ford region in August. Also under development in the Eagle Ford region is the Alamo Junction Rail Park, a project of National Property Holdings LP (see Shale Daily, May 20).

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