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Savage wins rail contract for GCGV project by Exxon Mobil, Saudi's Sabic

Utah-HQ'd company to build and operate railway for Gulf Coast Growth Ventures project that will create 6,000 construction jobs

GCGV's project will be built in Texas.
Screenshot / GCGV
GCGV's project will be built in Texas.

Utah, US-headquartered Savage Services has been picked by Exxon Mobil and Sabic to design, build, and operate a rail facility that will serve their joint venture project, named Gulf Coast Growth Ventures (GCGV), in San Patricio County, Texas, which will be built by Wood Group, McDermott and Turner Industries Group, Chiyoda & Kiewit, and Mitsubishi Heavy Industries and Zachry Group, creating 6,000 jobs during construction.

The rail facility will be located adjacent to the project and handle railcars transporting polyethylene, a plastic polymer used in the production of commercial and consumer products.

Savage will deliver rail switching and indexing, railcar washing and loading, railcar repairs, and facility maintenance services for the project, which is due to complete in 2021 – in line with GCGV’s planned start-up date of 2022.

In a statement, the American company said the rail project’s construction and operation would “comprise part of the thousands of high-paying jobs and billions in economic output that will be created by the GCGV project”.

Commenting on the contract, Savage’s energy and chemical sector president, Brad Crist, said: “We’re excited to partner with GCGV on rail infrastructure and operations to support what will be a world-class petrochemical facility.”

The GCGV chemicals complex includes a 1.8 million tonnes per annum (MTPA) ethane steam cracker, a 1.1 MTPA monoethylene glycol unit, and a polyethylene unit that will be built by Zachry Group, according to a June 2019 report by Construction Week's sister title Refining & Petrochemicals Middle East.

San Antonio-headquartered Zachry Group and Japan-backed Mitsubishi Heavy Industries America won a construction contract for the GCGV project last month.

In a statement this June, GCGV said on its website that the project would create more than 600 permanent jobs with average annual salaries of $90,000 per year, with a preliminary study conducted by Impact Data Source and cited by the project team estimating economic output of $22bn during construction from the project.

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