Rail Access Boosts Sinopec Plant

Sinopec is gearing up for the opening of a railway spur that will improve transportation access for lubricants manufactured at one of its plants, in Southwest China.

A dedicated 1.7 kilometer rail segment connecting a factory operated by Sinopecs Chongqing Petrochemical Sales Co. to Chongqings Funiuxi Station in Dadukou, Chongqing, is scheduled to open by the end of this month, according to the energy giants website.

The segment will CPSC to transport finished lubricants by rail directly from its plant to markets in southwest districts of China, without having to first transport them by truck to the rail network. Sinopec indicated that the products in question are medium- and top-tier lubricants. CPSC will also use the railway to bring in raw materials.

Sinopec established CPSC in December 2009 with the task of marketing oil products including lubricants. By the end of 2011, CPSC had nearly 3,000 employees and assets of about 4.6 billion (U.S. $700 million).

By streamlining its supply chain, Sinopec said it hoped to accelerate CPSCs expansion. Chongqing is one of Chinas largest cities and a major manufacturing hub.