A Houston-based company is starting work on a new ethanol transport hub in southern California.

U.S. Development Group (USDG) will begin construction on the West Colton Rail Terminal, a new ethanol hub located in the Inland Empire area of southern California.

Construction of the facility will occur in two phases. The first phase, located in Rialto, Calif., will consist of a manifold transfer system that will begin receiving and offloading ethanol railcars in the fall of 2009. The second phase includes full unit train capability and ethanol storage. It will be located on an adjacent site in Colton, Calif., and is scheduled for completion in mid 2010. The Phase 1 facility will have the capacity to handle the current Colton area demand for ethanol plus that required to meet the 2010 mandated increase to a 10% blend.

“Demand for ethanol in southern California continues to grow in order to meet the requirements of the State’s biofuels mandates,” said Larry Padfield, vice president of U.S. Development Group. “Our new facility will help meet this growing need for ethanol by greatly enhancing the distribution capability of ethanol in the region.”