Genesis Energy LP has completed preliminary work and is preparing to begin construction of a $75 million crude oil unit train unloading facility in Raceland, LA, the Houston-based company said Monday.

The Raceland Rail Facility, which would be capable of unloading up to two unit trains per day, would initially be connected to existing midstream infrastructure that will provide direct pipeline access to both St. James and Baton Rouge area refineries. The facility is expected to be operational in 2Q2014.

Genesis said it is in discussions to build pipeline infrastructure for the rail barrels to move south, ultimately providing access to existing infrastructure at Clovelly, LA, and connectivity, via existing pipelines, to the vast majority of refineries in southeastern Louisiana. The facility will have access to the Burlington Northern Santa Fe Railway and Union Pacific Railroad, facilitating direct hauls via both Class 1 railroads from multiple origination points.

The project includes more than 400,000 bbl of new crude oil storage and pipeline infrastructure.

Genesis gathers and transports more than 40,000 b/d of crude oil produced throughout Texas and the Gulf Coast. It owns and operates trucks, terminals and pipelines in the Permian Basin, Eagle Ford, Tuscaloosa Marine and Niobrara shales.

 Two years ago, Genesis acquired three above-ground storage tanks in Texas City, TX, with capacity of 230,000 bbl and acquired an existing barge dock at the same location, all 1.5 miles from its existing Texas pipeline system (see Shale DailyApril 12, 2011).