Construction has begun on the Pioneer Project, which will expand the New Town transloading facility in North Dakota, increasing rail capacity in the Williston Basin, according to joint venture partners Dakota Plains Holdings and Petroleum Transport Solutions.
Crude oil supplying the facility is currently sourced primarily from the Bakken formation.
Upon completion, which is scheduled for December 2013, the 192-acre site will have two loop tracks for unit trains, a load-out building, two 90,000-barrel storage tanks, 10 truck stations and five pipeline interconnections. This expansion will also allow four existing tracks to be used for inbound oilfield commodity supplies, such as sand. The interior of the loop will be utilized as an industrial space.
The crude oil will be transported on Canadian Pacific’s rail network, continuing a partnership between CP and Dakota Plains Holdings and World Fuel Services.
The total cost of the project is estimated to be $50 million and will be funded equally by Dakota Plains and World Fuel Services.