Tuesday, April 30, 2013

Port of Grays Harbor Okays Crude Oil Lease Option

The Port of Grays Harbor and US Development Group have begun a process that could lead to a crude oil export facility being built at Terminal 3 in Hoquiam.

The Grays Harbor Port Commission this month granted an option to lease the T3 property to Grays Harbor Rail Terminal for 24 months to allow for further analysis and obtaining of permits to bring the project to shovel-ready. A long-term lease could follow when permits are obtained.

If the project goes through, the company plans to invest more than $60-million in the site, according US Development Business Development Manager Kevin Laborne, and support 30 to 50 full time jobs at full operation.

Under the plan, cargo would arrive in fully contained rail cars similar to those accessing other terminals throughout the Port of Grays Harbor and then be unloaded via pipe connections into storage tanks at the site until the transport vessel arrives, then pipelines would transfer the bulk liquid from the tanks to the barge or ship.

The vessels would transport the cargo to destinations along the US West Coast. In addition, the facility could export cargo to Asia and import light oil for delivery via rail.

Grays Harbor Rail Terminal is a wholly owned local subsidiary of Texas-based US Development Group. The subsidiary says it plans to build six to eight bulk liquid storage tanks near Willis Enterprises in West Hoquiam. The agreement includes repairs to the Hoquiam river rail bridge to accommodate the additional traffic.