08/15/2013 07:14 EDT | Updated 10/15/2013 05:12 EDT

Crude Rail Terminal In Kerrobert Announced For Fall Of 2014

Freight wagons operated by Energopetrol d.d. stand in the rail yard at the INA Industrije Nafte d.d. oil refinery in Urinj, near Rijeka, Croatia, on Thursday, May 23, 2013. Croatia, whose economic development was stifled by Europe's bloodiest fighting since World War II, is trying to revive growth after four years of recession or stagnation. Photographer: Oliver Bunic/Bloomberg via Getty Images
KERROBERT, Sask. - A transportation company has announced plans to build a $100 million rail hub in central Saskatchewan by next fall.

Torq Transloading says it will more than quadruple its shipping output to 168,000 barrels a day when its planned crude-by-rail terminal is expected to hit full production.

CEO Jarrett Zielinski says the shipment of oil by train makes sense when done safely and ethically.

He says oil by rail has the ability to not only compete with pipelines but supplement pipelines in market diversity given the fact that the infrastructure already exists.

Zielinski says Torq's destination markets on the U.S. Gulf Coast, East Coast, and mid-continent make it a prime place to build the terminal.

Construction is set to begin this fall.

"The most expensive component of shipping crude by rail is actually the rail line itself," said Zielinski.

"Kerrobert is as far south and east geographically that we can access these barrels of heavy, undiluted product in a significant quantity and be able to ship them out via rail."

Torq currently has crude-by-rail terminals in Saskatchewan near Shaunavon, Bromhead, and Lloydminster, as well as other locations.

Kerrobert is 185 kilometres west of Saskatoon.

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