CIG Logistics has opened a rail terminal in Jal, New Mexico, US, in order to reduce transportation, transloading, and storage costs for oil producers operating in the Delaware Basin, which includes more than 550 rail car sports and 12 000 t of silo storage capacity. A phase two expansion is planned for early 2016, which will create 160 rail car spots and 6000 t of silo storage.
CIG Logistics Vice President of Business Development, Michael Collins, commented: “While the oil industry meets market challenges, efficient supply chain operations will be absolutely critical for oil and gas companies to sustain and grow their business. Our new Jal rail terminal will help oil companies in the Delaware Basin significantly reduce their frac sand transportation and storage costs, while improving safety, reliability and inventory management.”
The Jal terminal is designed to help oil producers decrease distance from rail terminal to well head, and is set to receive and handle both manifest and unit trains, as well as deliver reliable and real-time inventory management and business intelligence.
"Lea County officials have been a major supporter of the project and were instrumental in the opening of our new facility. We're grateful for their relentless efforts to help grow the local economy and stimulate business growth here in New Mexico,” said CIG Logistics Vice President of Facilities David Friesen.
Edited from press release by Angharad Lock