United Purchases Riverhead Deepdraft Products Terminal

United Completes Purchase Of Phillips 66 Riverhead Long Island 5 Million Barrel Oil And Petroleum Products Terminal; Deepwater Location Accommodates Any Ocean Going Vessel In The World.

United Riverhead Terminal, Inc., announced today that it has closed on the purchase agreement with Phillips 66 to acquire the Riverhead bulk storage terminal.  The facility, located on a 286 acre site in Suffolk County, New York, consists of 20 storage tanks, a truck transfer rack, and an off-shore barge/ship platform which is the only deepwater loading/unloading platform on the U.S. East Coast.  With an operating draft of 64 feet, the terminal's offshore platform routinely receives Suezmax vessels and is capable of handling VLCC tankers.


The facility features an 800 foot pier and a barge/ship loading platform one-mile from the shoreline. The loading platform is located in the deepest channel on the East Coast and is self-sustaining and provides its own electricity via generators. The storage capacities of the tanks exceed 5 million barrels which ranks the terminal as one of the largest facilities in the region and in the United States.  72 acres of the site is a waterfront tract located on the north side of Sound Shore Road and its 214 acre inland tract is located on the south side of Sound Shore Road in Riverhead, Long Island, New York.


The terminal's eastern Long Island location is significant as the Atlantic Ocean is approximately 30 miles to the east.  This enables large ships to come from the Atlantic from all points of the globe, thereby avoiding the Port of New York/New Jersey.  Delivered product can then be stored at the terminal and reloaded onto ocean-going barges   for all parts of the East Coast; its primary business is the central and north Atlantic region.  A significant amount of the product is received by ship, stored and delivered by ocean-going barge and tankers, and a minimal amount is delivered by transport truck, primarily for heating fuel for eastern Long Island.


Dan Gianfalla will continue to serve as Manager of the terminal, assisted by his 20 person crew. Mr. Gianfalla has been the manager at the terminal for 20 years, and many of the crew members have served more than 20 years. Mr. Gianfalla holds a Master Mariner's License and sailed for many years with Exxon Shipping Company.  The terminal has an exemplary environmental record.


John A. Catsimatidis, Chairman and CEO of the Red Apple Group, Inc. which includes the buyer, commented:  "We are pleased to acquire this important asset.  It permits us to diversify into a non cyclical fee-based business.  The terminal itself is well located strategically; access to low-cost and reliable marine transportation is vital to the competitiveness of its customers in petroleum and petrochemical operations.  Riverhead allows access to high capacity deepwater marine facilities that will give them a cost advantage over other locations."


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