Global Partners LP and Kansas City Southern (KCS) agreed to develop a unit train terminal in Port Arthur, Texas. The waterborne terminal will be built on a 200-acre area leased by Global from KCS. The terminal will serve at first as a destination for heavy crude oil from Western Canada, with an initial storage capacity of 340,000 barrels. Once unit train service begins, the terminal has an expected initial capacity of 2 unit trains per day.

“Situated within a 100-mile radius of nearly 5 million barrels of Gulf Coast refining capacity and an expansive pipeline network, Port Arthur is a prime destination for crude and refined products,” Eric Slifka, Global’s president and CEO, said in a statement. The terminal’s construction is contingent upon Global’s receipt of all necessary permits.