P&W: New Haven Safety-Kleen Site To Be Built Around Rail

Expansive Safety-Kleen Site Upgrade to Install Rail as Primary Mode for Shipping Out Waste Oil for Refining.

22 October, New Haven CT Safety-Kleen (a subsidiary of Clean Harbors, Inc) will completely rebuild and expand its current New Haven waste oil collection and transfer site to handle much higher volumes. The facility currently depends on trucks and barges to ship 3.3 million gallons of used motor oil annually to the company’s re-refineries. The driving factor in the site expansion is to refocus the takeaway strategy operations on a new rail build-out, which will expand the facility’s capacity to 8.4 million gallons per year.

Key piece in place

On 03.October, New Haven’s Board of Aldermen gave preliminary approval for S-K’s purchase of the discontinued tail of Waterfront St., which bisects the site. On 22.October, formal approval was granted for S-K to acquire the strip for $100,000, to be paid into a Restricted Coastal Management Fund for the city’s benefit. Ownership of the road is imperative to the site’s rail development. The agreement is the final major hurdle to proceeding with the build-out {Thomas Breen, New Haven Independent 08+22.Oct.2019 }.

According to David Paquette, S-K Director of Branch Engineering , ECC Corporation will start the track work in 2019, and shipments are set to begin late Spring 2020. The new track will consist of a switch off of the existing Belle Dock track stub, and two spurs with capacity for eight cars, with four filling stations. The site will be served by the P&W local. Plans are to ship 170 loads per year to meet current trucked capacity, and more as volume expands {conversation with DP, 13.Nov.2019} .

New Haven CT

Safety-Kleen recovered motor oil collection facility will be reconfigured and expanded specifically to utilize the P&W Belle Dock Running Track to ship recovered petroleum products to Midwest refineries to be reprocessed into “new” fuel and lubrication products. The site’s strategic plan is to ship out 170 tank cars per year. {Courtesy of Clean Harbors, Inc., annotated by ANRP}.

Location along the Belle Dock Running Track was an attraction to Safety-Kleen when it bought the parcel in 2001. Rail access has risen in importance in the last five years. “Rail is a major element of our strategic growth plan,” said Paquette {DP conversation}.

 

Rail best for flexibility

Currently, the site ships collected waste oil by truck and barge. Oil to be re-refined gets trucked to a Cedar Hill transload, and continues by rail to S-K’s Breslau ON refinery. S-K is the largest re-refiner of waste oil in North America. The re-refined products meet standards for “new” oil used as lubricants in motor vehicles and other machinery and equipment. The drayage effort amounts to 700 truckloads per year, plus added complexity, risk, and limitations {Breen}.

 

The New Haven facility has also barged a lot of used oil that to blending facilities in New Jersey and New York, as an ingredient in bunker fuel. But that market is at risk, due to new IMO 2020 marine sulfur emissions regulations being implemented this year. “I’m pretty certain that, come IMO [2020], those that don’t have an outlet other than the bunker blending and industrial fuels market are going to really struggle to offer any type of value to [waste oil producers],” said Craig Linington, executive vice president of oil for Safety-Kleen {Matt Hudson, National Oil and Lube News 01.Aug.2019}. The expanded rail capacity will give S-K greater flexibility in delivering waste oil to varying markets.

New Haven CT

The Forbes Avenue site has been tantalizingly close to a short stub off the Belle Dock Running Track (BDRT). New challenges and opportunities in the markets for Safety-Kleen’s waste oil products has increased the value of rail takeaway. S-K is also generally committed to contant improvement in the sustainability of its own operations, which is another benefit of utilizing rail{Courtesy of Clean Harbors, Inc., annotated by ANRP}.