In 2018, DHIP entered into a Public-Private Partnership with the Plaquemines Port Harbor and Terminal District, a Louisiana state agency, and subsequently selected Tallgrass Energy, a wholly-owned subsidiary of Blackstone Infrastructure Partners to construct and operate the Plaquemines Liquids Terminal (PLT), a $2.5 billion liquid bulk storage terminal and deep-water export facility located on the lower Mississippi River approximately 20 miles south of New Orleans.
PLT is capable of storing 20 million barrels of bulk liquids and is designed to load and unload Post-Panamax and Capesized vessels. PLT is in the final stages of permitting and engineering and scheduled to begin construction in 2022.
In 2019, DHIP partnered with the Ute Indian Tribe and formed a Public-Private Partnership with the Seven County Infrastructure Coalition, a Utah state agency, to purchase the exclusive development and ownership rights to the Uinta Basin Railway. Construction is expected to be $2.2 billion and is backed by investment grade “take-or-pay” transportation contracts from shippers. The Uinta Basin Railway will allow for Uinta waxy crude to enter distant markets on a much more robust basis and be transported in a faster, more cost-effective, and environmentally friendly manner. The railway will connect to both western based national Class-I rail networks (UP & BNSF) allowing stranded producers to unlock the second largest proven oil reserves in the United States and provide access to competitive pricing in distant markets.
In February 2021, DHIP partnered with the Rio Grande Pacific Corporation, a Fort Worth based railroad company, to sponsor a Special Purpose Acquisition Company (SPAC) called Integrated Rail and Resources Acquisition Corp. (IRRX). IRRX is a publicly traded SPAC listed on the New York Stock Exchange and intends to acquire existing stranded and undervalued commodity producers and vertically integrate them using more robust rail transportation assets and solutions. Between 40-80% of the final overall commodity cost delivered to an end-user or customer comes from transportation fees. IRRX’s approach to vertical integration will give its acquired companies the ability to cut transportation costs on delivery giving it a pricing and market advantage over competitors.