Benefits Overview
Manly Terminal LLC provides the missing infrastructure needed to facilitate the growth and distribution of ethanol in the United States. No matter if you are the producer, marketer, trader, or end-user of ethanol, Manly Terminal can provide benefits that will allow you to successfully navigate the uncharted waters of the ethanol industry. We offer a wide range of industry-specific services and capabilities that can be uniquely tailored to create value-delivering solutions to each customer.
Unit Train Efficiencies – Most Class I Carriers are creating rate and service incentives to build 75-95 car unit trains. The consolidation of ethanol volumes at Manly Terminal will allow large and small producers to enjoy these incentives such as more frequent dispatch of unit trains, reduced transit times for expensive tank cars and lower freight rates. Also, daily production can be included in throughput at Manly Terminal to all emerging markets. Eventually, pre-posted "sailing schedules" of unit train departures to each market will allow marketers and traders of ethanol to better capitalize on these unit train efficiencies. Additional information on unit train savings
Expanded Market Opportunities – The perceived “handcuffs” attributed to being a captive shipper on one rail line are eliminated with Manly Terminal. Located on the Iowa Northern Railway (IANR), we have efficient and low-cost access to the entire North American rail network. IANR provides a wholesale service to all of its rail connections, allowing the product to flow to the most profitable market on a flexible and dynamic basis. Ethanol can move via the connecting carriers with the best overall transit time. This reduces car lease expense and on-site rail infrastructure costs. Freight rates to common destination regions may differ significantly depending on the routes. Manly Terminal finds the most efficient routes, from both a service and cost standpoint, to provide the lowest possible logistics costs. Additional information on expanded market opportunities
Spot Market Options – With extensive and expanding storage capability, ease of trading and access to the North American marketplace, we expect Manly Terminal to become THE spot market. Trading of ethanol at a key delivery point will benefit the entire ethanol industry and provide the best possible logistics options. There will be less penalty discounting to producers and direct access to buyers on site. This key delivery point also helps eliminate the risk of insufficient storage or tank car availability to handle daily production. Major purchasers of ethanol will be posting bids at Manly Terminal, and it is expected that Chicago Board of Trade (CBOT) will use Manly Terminal as the key delivery point for ethanol. This puts the capacity and the highest possible value of the commodity in the center of ethanol production. Additional information on spot market options
Rail Car Trip Leasing Options – Another significant opportunity at Manly Terminal is better utilization of tank cars. Currently, each ethanol producer, marketer, trader, or end-user supplies tank cars to a facility at a specific cost per car, per month. Due to delay times with single car moves and the lack of tank cars for unit trains, many times production is dumped into the spot market where major discounting occurs. Manly Terminal expects to have arrangements with one or more major tank car leasing companies to insure that cars are available when needed and at a reasonable cost. Trip lease cars can be combined with producer or marketer leased cars to get the unit train volumes together quickly and get the product moving on a scheduled basis. Additional information on rail car trip leasing options.
Trading and Arbitrage Opportunities – A storage terminal where large volumes of ethanol can be accumulated allows a trading market to evolve. Trading and arbitrage of ethanol as a commodity is finally possible in a large scale. Manly Terminal will facilitate and manage this trading system by providing the single delivery and clearing point needed for efficient futures trading. Liquidity and risk-reduction is available to the marketplace for the first time.
Single Rate Logistics Offering – Through our strategic partnership with KAG Ethanol Logistics, one phone call will handle all of your ethanol needs from production point to final distribution point. The best news is that by bringing all of the ethanol transportation and storage players together, we can provide these services to you at a single, low-cost rate requiring one invoice. No excessive paperwork, contracts or fees are required to do business with Manly Terminal LLC. On-line rates page
