Service & Supply | Midstream - Rail & Trucks

Dakota Plains Initiates Ops at Bakken Frac Sand Transloading Terminal

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Dakota Plains Holdings, Inc. has reported the commencement, on June 12, 2014, of its frac sand transloading operations at the Pioneer Terminal in New Town, North Dakota, through its new sand transloading joint venture.

As announced in August 2013, Dakota Plains and UNIMIN Corporation, the world’s leading producer of quartz proppant, executed an agreement to construct a frac sand automated terminal with 8,000 tons of storage and a throughput capacity of 750,000 tons per year. The terminal is fully operational and will start-up this week.

Dakota Plains’ sand joint venture has entered into an agreement with Rail Link, Inc., a wholly owned subsidiary of Genesee & Wyoming Inc., under which Rail Link will operate and maintain the Company’s frac sand transloading facility.

Chairman and Chief Executive Officer of Dakota Plains, Craig McKenzie, said, "We are pleased to commence our frac sand transloading operations at UNIMIN’s newly built, state-of-the-art facility at the Pioneer Terminal. This new operation will make Pioneer a major supplier of frac sand in the Williston Basin and is expected to generate about $2 million in earnings per year."

Richard Grant, Director of Marketing of Rail Link, said, "On behalf of Rail Link, we look forward to working with the talented team at Dakota Plains to expand operations based on increased frac sand demand, and further develop an inbound oilfield products business at the Pioneer Terminal."