Rail and the Oil Refinery Business

PBF Energy — Delaware City, DE

Refineries on the Delmarva Peninsula process crude oil from the Midwest, which is transported to the refinery facilities via rail. PBF Energy’s Delaware City refinery relies on the NEC for rail access. Freight railroad Norfolk Southern has made an investment of $20 million in new rail upgrades (to be completed in 2015) that depends on continued NEC access. More substantially, PBF Energy has put more than $450 million of capital into the oil refinery in Delaware City, Delaware,1 including $52 million for a new crude oil rail unloading facility linked to the NEC.

PBF’s investments are part of a larger resurgence in the Region’s refining industry. Over the last few years a number of refineries along the Delaware River and Bay have closed due largely to uncompetitive business costs. Today these facilities have all reopened, and the NEC plays a role in the financial viability of these businesses.

PBF Energy and Norfolk Southern have invested in rail facilities that rely on the NEC. Photo courtesy of PBF Energy.

1. PBF Energy. 2011. PBF Celebrates Successful Restart of its Delaware City Refinery.