Ethanol Producer Solutions
A full scale infrastructure to support the ethanol industry is finally here. Manly Terminal can provide ethanol producers with a breakthrough in service to provide flexible, on-time movement of large quantities of production. This translates into higher revenues and lower operating costs to the producer. Turn pennies-per-gallon savings into millions of dollars in additional profit!
From production point to final market destination, we can offer the following solutions designed to optimize the profits for the ethanol producer:
- Freight Savings - As part of the Manly Terminal alliance, long-term contracts with locally operated trucking and rail services will afford low cost, continuous cycles to and from Manly Terminal. These “wholesale” freight services will allow the industry to enjoy the low cost access to a common delivery point for trading and exchange and still have the flexibility to play the most profitable consumption markets on a real time basis.
- Timely Utilization of Unit Trains - Our ability to concentrate and store a large quantity of ethanol from multiple producers allows you to capitalize on the cost savings of unit train access. Prior to this centralization of a storage and rail facility, unit train builds took days to accomplish. Now it can be done in hours!
- More Turns on Rail Assets -A key component to overall cost efficiencies for the producer becomes overall transit times on rail assets. By building timely unit trains and utilizing a local rail system that interconnects with the major carriers, turn times can be significantly reduced.
- Expanded Market Access - Iowa Northern Railway Company is adjacent to Manly Terminal and interconnects with all of the major rail systems throughout the United States – giving customers rail service to every market in North America. With multiple rail connections, Manly Terminal leverages the various combinations of freight rates to insure that ethanol customers are getting the lowest possible rate to the best possible market.
- Ability to Better Manage Assets - Manly Terminal intends to join with one or more car leasing companies to maintain a revolving inventory of tank cars to efficiently manage increases in production at favorable market prices.
- Manage Market Fluctuations - Manly Terminal also provides sufficient storage which allows ethanol producers and marketers to capitalize on price fluctuations in order to improve their margins.
- Single Rate Logistics - By combining the various services of the partner companies, KAG Ethanol Logistics will provide the most cost effective, door-to-door delivery solution to the ethanol industry. This means one invoice, one rate and no excessive paperwork.
