Tesoro and Savage Companies have formed a joint venture to
develop and operate a new 120,000 bpd crude-by-rail unloading
and marine loading facility at the Port of Vancouver,
Washington, the companies confirmed on Thursday.
The deal is subject to approval by regulatory agencies and port
With access to rail and existing marine infrastructure, the
Port of Vancouver is uniquely positioned to serve as a hub for
the distribution of North American crude oil to West Coast refining centers, according to
Tesoro and Savage say they are ideal partners for this project, having already operated in
close partnership for almost 10 years on the West
"This is an exciting project, and we are pleased to be
partnering again with Savage," said Greg Goff, CEO of Tesoro.
"Building upon the recent success of the rail unloading
facility at our Anacortes, Wash., refinery, where we have been
delivering Mid-Continent crude oil via unit train in an environmentally sound and
cost-effective manner, this project is the ideal next step for
Tesoro as we drive additional feedstock cost advantage to the
remaining refineries in our West Coast system."
The Tesoro-Savage venture will own the crude unloading and
marine loading facilities and will enter into a
land lease agreement with the port for an initial period
of 10 years.
Savage will oversee and manage the design, construction and operation of the
facility, which is expected to be operational in 2014. It will
represent an investment of approximately $75 to $100 million,
and will be designed to handle an estimated initial volume of
120,000 bpd with potential near-term expansion capability to 280,000
"We are looking forward to bringing crude oil destination
services to the Port of Vancouver," said Kirk Aubry, chief
operating officer of Savage.
"This partnership solidifies Savage's position as a leading
provider of services in the crude-by-rail market to refiners,
producers and marketers," he added. "More importantly, our
collaboration with Tesoro will ensure that the facility is
safe, productive and environmentally responsible."