Pipeline causing propane supply problems
Focusing on Rail and Truck
U.S. propane supplies remain ample, but there are gaps in distribution. Last year, CHS began investing $24 million to expand storage and increase rail capacity at four facilities in North Dakota and Minnesota, and build a new terminal to serve customers in western Wisconsin and eastern Iowa.
For example, at the Rockville, Minn., terminal, the expansion will increase propane storage to 620,000 gallons, upgrade unloading capacity to eight railcars every 41Ž2 hours, and add two bays capable of loading six trucks per hour, explains Kumm. “All of the facilities will now be able to load two transport trailers in just 20 minutes.”
Construction and improvements should be completed by September 2014, in time for the grain drying and home heating seasons. “CHS is also expanding its railcar and truck fleets to meet customers’ growing propane needs,” says Kumm. “Close collaboration throughout the supply chain is necessary to ensure end users have the propane they need, when they need it.”
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