Colonial Pipeline & Transmontaigne To Build Mississippi River Petroleum Products Distribution Fac.

To Provide Customers More Efficient and Effective Delivery of Petroleum Products 

ATLANTA — Colonial Pipeline Company, the nation’s largest transporter of petroleum products, and TransMontaigne Inc. (ASE:TMG), the dominant provider of seamless petroleum product services, today announced plans to construct a Baton Rouge-based barge dock facility that will greatly enhance their ability to deliver and receive customer shipments throughout the Mississippi and Ohio River regions. 

TransMontaigne will construct, own and operate the marine loading and unloading facility on the Mississippi River 29 miles north of Baton Rouge, capable of loading all grades of petroleum products transported within Colonial’s pipeline system. The facility is designed to handle simultaneous deliveries to and from the nearby Colonial tank farm, the loading of multiple barges at rates in excess of 14,000 barrels per hour, and inbound and outbound volume exceeding 50,000 barrels per day. 

Colonial will build three 4.5 mile pipelines: two 16-inch lines to feed the marine facility and waterway deliveries along the Mississippi and Ohio Rivers, and one 16-inch pipe to receive barge deliveries for long haul system shipments. Colonial will also own and operate a new pump station at its 2.5 million barrel Baton Rouge tank farm and pipeline connections between the tank farm and marine facility. 

“The new barge dock and Colonial’s connection to it are a direct solution to a growing customer need for more accessible and cost effective distribution channels along the Mississippi River corridor,” says David Lemmon, president and chief executive 

officer, Colonial Pipeline Company. ​“With a current demand for barge-supplied refinery products exceeding 100,000 barrels per day for delivery destinations north of Baton Rouge, Colonial and TransMontaigne will now have the capability to provide customers with the flexible and expanded transportation services they need to meet supply objectives in this growing region.” 

“This strategic alliance between Colonial and TransMontaigne, which results in a major interconnection of pipeline and waterborne transportation, combines the strengths of both companies and provides an innovative solution to meet the logistical needs of refiners, shippers and other customers who utilize the inland river system in an increasingly complex energy market,” says Richard E. Gathright, president and chief operating officer of TransMontaigne. 

Construction of the joint Colonial and TransMontaigne facilities is scheduled to begin this summer and should be completed and operational by early next year. While project construction costs were not disclosed, company officials stated that the Baton Rouge facility is part of ongoing initiatives to make strategic investments in petroleum products transportation facilities and services, and will provide their customers with a significant advantage through access to a larger number of gulf coast supply sources via pipeline. 

About TransMontaigne, Inc. 

TransMontaigne Inc. (ASE:TMG), headquartered in Denver, Colorado, provides a broad range of logistically integrated transportation, terminal, supply, distribution, gathering, processing and marketing services through its wholly-owned subsidiaries. TransMontaigne serves refiners, manufacturers, producers, transporters, suppliers, distributors, marketers and end-users of petroleum products, natural gas, crude oil, chemicals, and other bulk liquids in the mid/​downstream sector of the petroleum and chemical industry. 

The TransMontaigne Logistical Services Group, which includes TransMontaigne Transportation Services Inc. (TTSI) and TransMontaigne Product Services Inc. (TPSI),

operates from principal offices in Atlanta, Georgia, and annually handles over 8.4 billion gallons of petroleum products. Its refined petroleum product, chemical, crude oil and other bulk liquid services are directly supported by TTSI through its ownership and operation of a network of assets in 19 states, including three pipeline systems and 59 terminal, storage and delivery facilities. Operating at over 150 supply points in 49 states, TPSI provides petroleum product services as a supplier, scheduler, distributor, exchanger, and wholesaler of refined petroleum products and natural gas liquids from points of manufacture to utilization. The services provided by TPSI are integrated with the TTSI facilities, systems and services, and the utilization of over 60 third party terminals and various common carrier pipeline systems, including Colonial Pipeline Company, on which TPSI is a major shipper. 

About Colonial Pipeline Company 

Colonial Pipeline Company, headquartered in Atlanta, Ga., operates the world’s largest refined products pipeline, delivering a daily average of 80 million gallons of gasolines, kerosenes, home heating oils, diesel fuels and national defense fuels to shipper terminals in 12 states and the District of Columbia. 

Colonial’s 5,349 mile pipeline system transports fuels from Texas, Louisiana, Mississippi and Alabama to 267 marketing terminals located near the major population centers throughout the Southeast and along the Eastern Seaboard. In addition, Colonial provides a portfolio of information and logistics management services to its customers. 

In 1997, Colonial delivered 93.4 billion ton miles of petroleum products, accounting for 20-percent of the 469.6 billion ton miles of petroleum products transported over pipelines, water carriers, motor carriers and railroads nationwide.