USDG inaugurates ethanol rail terminal in Texas

By Bryan Sims | June 02, 2008
Web exclusive posted June 9, 2008 at 10:03 a.m. CST

U.S. Development Group LLC, an industry leader in ethanol handling and distribution terminals, celebrated the grand opening of its Dallas-Fort Worth Rail Terminal LLC, a state-of-the-art ethanol handling and distribution terminal located in Arlington, Texas.

A wholly owned subsidiary of Houston-based USDG, the rail terminal will distribute a majority of fuel-grade ethanol for north and central Texas and provide much-needed logistical diversification in the ethanol fuel supply chain, according to Larry Padfield, vice president of USDG.

"The significance of our terminal is really aimed at providing the most efficient and cheapest delivery of ethanol to Dallas as can be because we get it in via our unit trains," Padfield said. "The ability to pump ethanol directly to gasoline terminals via pipelines significantly reduces the time and cost associated with secondary trucking."

Located on 15 acres within a heavy industrial area, the facility is served by the Union Pacific Railroad and consists of a rail terminal, pipeline operation, truck load operation and a mass storage facility. Additionally, the terminal features 130,000 barrels of dedicated storage capacity, an 84-railcar high-speed offloading facility, can receive manifest traffic and has outbound truck and pipeline capabilities. The terminal also features an allocation program that can be customized to each customer.

According to Padfield, USDG began operations with the Dallas terminal in April 2006 with a transloading facility to meet the needs of the market when methyl tertiary butyl ether (MTBE) was removed from gasoline. During that time, USDG began the development of the terminal, which actually "went live" in December 2006, Padfield said. Due to inclement weather and other factors, Padfield said that that company wanted to wait for the right time to hold a grand-opening for the public.

"We had to factor in permitting issues, zoning issues, acquisition of the property and construction time," Padfield said.

In addition to the Dallas-Fort Worth Rail Terminal, USDG has major ethanol hub facilities in Baltimore, Houston and Linden, N.J., and is currently expanding its network of strategically located terminals across North America.

To learn more about USDG, visit