BASF to invest €30 million in Tarragona cargo rail station

German chemical multinational BASF will construct an intermodal rail station in Tarragona for shipping cargo. This project entails an investment of 30 million euros. The infrastructure will allow for the transport of chemical goods to and from Europe by train, especially products made locally in the Tarragona area. The station will be built on BASF’s Tarragona facility, the company’s largest complex in southern Europe. In addition to its products-- primarily plastics, insulating materials and fungicides--the terminal will also be available for use to all of the companies in the area. It will be the second cargo terminal built by a company in Tarragona’s potent chemical sector, after Bayer opened their own in January last year.

BASF expects the new station to become operational during the first quarter of 2017, but the start of the work is contingent on the construction of the so-called third line, which is the responsibility of the Spanish government. This project will allow the rail lines that connect with Europe to have the international standard width (UIC) instead of the Iberian width, a historical shortcoming that requires merchandise leaving Catalonia to change trains when it arrives at the French border, a fact that makes cargo transport slower and more expensive. A year ago the Spanish government promised to finish this third rail-- 80 kilometers of line between Vila-seca and Castellbisbal-- in 2015, a date now impossible to meet. The project has already been bid out, but has not yet been awarded, and there is no date set for the start of work, which is expected to take two years.

According to BASF, “the lack of the international width penalizes economically” those companies that produce here in Spain. The German company stressed that the percentage of transport by rail is much lower in Spain than in central European countries, which has a detrimental effect on competiveness, security and carbon emissions. To make this new intermodal station possible, BASF has formed a joint venture with four other companies: Contak, Hoyer, Schmidt and Tradilo Inversiones. The project will include three lines of more than 500 meters in length, and a capacity for 8 trains daily with 24-hour service, features that, according to BASF, will permit the movement of 120,000 containers per year.

Good news for the sector

The announcement from BASF was met with satisfaction by the chemical sector in Tarragona, which is going through a difficult time due to high energy costs and competition from North American companies, where energy is cheaper thanks to hydraulic fracking, and from those in the Middle East, which have access to more raw materials. The general director of the Chemical Business Association of Tarragona, Teresa Pallarés, stated that “building this station is a strategic move for the future that proves that, in spite of difficulties, we are doing things well”. Pallarés believes that the investment by BASF “is also a message to the Spanish government to do its part”. The chemical sector in Tarragona will also be the stage today for more good news, with the inauguration of the extension of the chemical dock at the Tarragona Port. This represents an investment of 80 million euros that will re-launch the traffic of chemical products from the port facilities, and reinforce its role as the hub for this sector in the Mediterranean. At the inauguration, business representatives will be joined by the politician responsible for the third rail, Public Works Minister Ana Pastor.