Pacific Ethanol and Toledo, Peoria & Western Railway Begin Unit Train Service
November 14 2016 - 8:30AM
Pacific Ethanol, Inc. (NASDAQ:PEIX) and Toledo, Peoria &
Western Railway (TPW), a subsidiary of Genesee & Wyoming Inc.
(G&W) (NYSE:GWR), announced they have commenced unit train
service from Pacific Ethanol’s plant in Pekin, Illinois.
“This unit-train solution enables us to increase
our overall sales volumes by expanding our ethanol distribution to
new markets on the East Coast,” stated Neil Koehler, CEO of Pacific
Ethanol. “This agreement with TPW builds on our producer-marketer
business plan for the Pekin plant, increasing revenue and providing
reliable and efficient service to customers in new markets.”
Under the new service, the Tazewell & Peoria
Railroad, a G&W-owned switching and terminal railroad that
serves the Pekin plant, hauls the plant’s daily output to Creve
Coeur, Illinois, where the connecting TPW has the track capacity to
aggregate the railcars and assemble unit trains of as many as 96
cars. The TPW, a 200-mile short line railroad, then interchanges
the unit trains with connecting Class I railroads for delivery to
final destinations east of the Mississippi.
“Enabling Pacific Ethanol to originate unit
trains on the TPW is the third recent example of G&W railroad’s
commitment to the biofuels industry,” said Mike Webb, senior vice
president for distribution services for Genesee & Wyoming
Railroad Services, Inc. “This past July, we announced a project
that allows an ethanol customer to receive unit trains via
G&W’s Arkansas Midland Railroad, and last year at this time,
our San Diego & Imperial Valley Railroad opened a Choice
Terminal bulk transload facility with a biofuels company as its
anchor customer.”
The ethanol market is expected to remain strong
overall, with increased demand from international markets and from
certain U.S. markets raising their 10-percent blend minimums.
About Pacific Ethanol,
Inc.Pacific Ethanol, Inc. is the leading producer and
marketer of low-carbon renewable fuels in the Western United
States. With the addition of four Midwestern ethanol plants in July
2015, Pacific Ethanol more than doubled the scale of its
operations, entered new markets, and expanded its mission to
advance its position as an industry leader in the production and
marketing of low carbon renewable fuels. Pacific Ethanol owns and
operates eight ethanol production facilities, four in the Western
states of California, Oregon and Idaho, and four in the Midwestern
states of Illinois and Nebraska. The plants have a combined
production capacity of 515 million gallons per year, produce over
one million dry tons per year of ethanol co-products such as wet
and dry distillers grains, wet and dry corn gluten feed, condensed
distillers solubles, corn gluten meal, corn germ, corn oil,
distillers yeast and CO2. Pacific Ethanol markets and distributes
ethanol and co-products domestically and internationally. Pacific
Ethanol’s subsidiary, Kinergy Marketing LLC, markets all ethanol
for Pacific Ethanol’s plants as well as for third parties,
approaching one billion gallons of ethanol marketed annually based
on historical volumes. Pacific Ethanol’s subsidiary, Pacific Ag.
Products LLC, markets wet and dry distillers grains. For more
information please visit www.pacificethanol.com.
About TPWTPW runs 207 miles
from west Indiana to Peoria, Ill., and interchanges with Bloomer
Shippers Connecting Railroad; Canadian National; CSX; Kankakee,
Beaverville and Southern Railroad; Keokuk Junction Railway; Norfolk
Southern; Tazewell & Peoria Railroad; Union Pacific; and US
Rail Partners. Commodities shipped include agricultural products,
cement, chemicals, biodiesel and wind tower components. The
railroad was acquired by G&W in 2012.
About G&WGenesee &
Wyoming owns or leases 121 freight railroads worldwide that are
organized in 10 operating regions with approximately 7,200
employees and more than 2,800 customers.•
G&W’s eight North American regions serve 41 U.S. states and
four Canadian provinces and include 113 short line and regional
freight railroads with more than 13,000
track-miles.• G&W’s Australia Region
provides rail freight services in New South Wales, the Northern
Territory and South Australia and operates the 1,400-mile
Tarcoola-to-Darwin rail line. • G&W’s
U.K./Europe Region is led by Freightliner, the U.K.’s largest rail
maritime intermodal operator and second-largest rail freight
company. Operations also include heavy-haul in Poland and Germany
and cross-border intermodal services connecting Northern European
seaports with key industrial regions throughout the
continent.G&W subsidiaries provide rail service at more than 40
major ports in North America, Australia and Europe and perform
contract coal loading and railcar switching for industrial
customers.
Pacific Ethanol’s “Safe Harbor”
Statement under the Private Securities Litigation Reform Act of
1995: Statements and information contained in this
communication that refer to or include Pacific Ethanol’s expected
future results or other non-historical expressions of fact are
forward-looking statements that reflect Pacific Ethanol’s current
perspective of existing trends and information as of the date of
the communication. Such forward-looking statements include, but are
not limited to, Pacific Ethanol’s expectations regarding its
expansion of ethanol distribution to new markets and the resultant
increase in sales volumes; expectations regarding the reliability
and efficiency of rail service to customers in new markets; the
overall strength of the ethanol market; and increased demand from
international markets. Pacific Ethanol’s expectations are not
predictions of actual performance. Actual results may differ
materially from Pacific Ethanol’s current expectations depending
upon a number of factors affecting Pacific Ethanol’s business.
These factors include, among others, adverse economic and market
conditions, including for ethanol and its co-products; fluctuations
in the price of oil and gasoline; raw material costs, including
ethanol production input costs; the reliability and efficiency of
rail services; Pacific Ethanol’s ability to successfully execute on
its plans to expand into new markets; the anticipated size of the
markets and continued demand for Pacific Ethanol’s products; the
impact of competitive products and pricing; the risks and
uncertainties normally incident to the ethanol production and
marketing industries; and other events, factors and risks
previously and from time to time disclosed in Pacific Ethanol’s
filings with the Securities and Exchange Commission including,
specifically, those factors set forth in the “Risk Factors” section
contained in the Company’s Form 10-Q filed with the Securities and
Exchange Commission on November 8, 2016.
G&W’s "Safe Harbor" Statement under
the Private Securities Litigation Reform Act of 1995:
Statements in this press release and conference call regarding
Genesee & Wyoming's business which are not historical facts are
"forward-looking statements" that involve risks and uncertainties.
For a discussion of such risks and uncertainties, which could cause
actual results to differ from those contained in the
forward-looking statements, see "Risk Factors" in the Company's
Annual Report or Form 10-K for the most recently ended fiscal
year.
G&W CONTACT: Michael Williams, G&W Corporate Communications
1-203-202-8900
Web site: www.gwrr.com
PACIFIC ETHANOL CONTACTS:
Company IR Contact – 1-916-403-2755 | investorrelations@pacificethanol.com
IR Agency Contact – Becky Herrick, LHA, 1-415-433-3777 | bherrick@lhai.com
Media Contact – Paul Koehler, 1-916-403-2790 | paulk@pacificethanol.com
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