Morristown & Erie Railway Inc.

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Bayshore Terminal Co.
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On December 17, 1995, the Morristown & Erie's Bayshore Terminal Company started to provide Tosco's (now ConocoPhillips) Bayway Refinery with contract switching services.  The M&E was invited to provide the services because of its outstanding safety record and its history of providing service customized to the user’s needs.  To this end, the M&E tailored both the contract and the service commitment to both ConocoPhillips’ and Exxon Chemicals (the other major tenant/user, now known as Infineum) needs and service requirements.  The result is that ConocoPhillips and Infineum have been able to realize significant cost savings when compared to their earlier switching arrangement.  They have also been able to better utilize the resources available to them, and rest easier knowing their high safety standard is being maintained.

The Bayshore Terminal Company has a permanently assigned Trainmaster, as well as a three-man train crew.  A safety coordinator is on call at all times, and spends at least two days a week at the refinery.  Other Morristown & Erie personnel from Morristown provide coverage for vacations and other absences.  All train crew personnel from either operation are qualified on the other’s territory, and where possible, crew rotations take place.

Bayshore crews work within the confines of the refinery and do not take "ownership" of any rail cars in the sense of a common carrier moving goods for hire.  The Superintendent coordinates the moves within the plant for the day with the customers, and ensures the proper cars are moving in and out of the refinery.  CSX Transportation and Norfolk Southern serve the Bayway refinery through the "Conrail Shared Asset Area" based in Newark. 

The Bayway Refinery produces some 12 million gallons of petroleum products every day. Here crude oil and other feedstocks are converted into finished petroleum products, the most valuable of which are the clean fuels such as gasoline, low sulfur diesel fuel, jet fuel, and heating oil. Annually, ConocoPhillips sells billions of  gallons of retail transportation fuels under well-recognized brands including its own "76" brand as well as the "BP" and "Exxon" brands. As a major participant in the wholesale fuel market, the Company's refining division sells barge, truckload, and pipeline quantities of fuel at terminals primarily to independent marketers.

Also served is the former Exxon Chemicals Paramins division, now known as “Infineum.”  This company is a joint venture with Shell International Chemicals Ltd. and Shell Chemical Co.  The new enterprise was fully operational on January 1, 1999.  There are three regional businesses and technology centers located in the United States, United Kingdom, and in Singapore, 19 manufacturing sites and four research facilities around the world.  The U.S. business center, the largest manufacturing facility and a research center are located at Bayway Refinery.

The new company comprises three specific business units: crankcase lubricant additives, fuel additives, and specialty lubricant additives.  Lubricant additives are used primarily in the lubrication of automotive, heavy diesel and marine engines where they help to reduce engine wear, disperse sludge and minimize troublesome deposits.  Fuel additives provide improved properties that increase engine performance and reduce environmental impact.  Infineum also manufactures automatic transmission fluids, gear oils and industrial oils.

Infineum’s customers are oil companies and other lubricant marketers who use petroleum additives to produce finished lubricants and fuels for their customers.

In addition to the above customers in the plant, ConocoPhillips is nearing completion of a 775 million-pounds-per-year polypropylene plant.  The plant was designed for extensive rail service, and is scheduled to be operational in 2002.

 

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Last modified: May 25, 2004