Push it to the Limit - North American Rail Shippers

Push it to the Limit
JOHN BARRET | General Manager Supply Chain
1
CPChem: Formed in July 2000
“Push it to the Limit”
Strategic Goals:
• Invest in infrastructure
• Increase export flexibility
CPChem’s Rail Investments
• 2008 decision to add rail capacity
• Existing Storage-In-Transit (SIT)
yards: ~2000 spots
• ~10,000 hopper and tank cars
• Current shipments: ~32,000
carloads per year
North America Polyethylene Growth Initiatives
North America Polyethylene Capacity and Project Expansions
• Current Polyethylene Capacity: 20,300 KTA
• 2014 – 2019: Potential Polyethylene Capacity Additions: 12,600 KTA
CPChem USGC Petrochemical Project
• 1,500 KTA Purity Ethane Cracker
• 1,000 KTA Polyethylene Units
• 10,000 Engineering/Construction Jobs
• 400 Direct Jobs
• Planned Start-up in 2017
US Gulf Coast Petrochemicals Project
C O N TA C T U S | 8 0 0 - 2 3 1 - 1 2 1 2 |
CPChem’s Rail Investments
• Rail-related investment: >$500 MM (~40+ miles of rail)
• Purchase: 2,750 hopper cars
• Additional Shipments: 11,000 carloads per year of PE from Old Ocean
“Push it to the Limit”
Currently:
 Exporting minimal product today
 Existing approach to ports will not meet
future needs
Risks:
 Increasing capacity additions
 Product with no outlet
 Limitations of existing infrastructure
 Container availability
“Push it to the Limit”
Future congestion
at Port of Houston
More diverse and
complex
export logistics
“Push it to the Limit”
Europe
US Exports
Med & Middle East
Puerto
Rico
Asia
Central
America
Oceania
West
Coast
South
America
East
Coast
South
America
“Push it to the Limit”
• Commit to necessary investments to expand service offering
• Insure flexibility to export product though alternative port options