MARKETS

SunCoke closes KRT takeover

SUNCOKE Energy Partners has completed its $US86 million purchase of Traxys' Kanawha River Termina...

Donna Schmidt
SunCoke closes KRT takeover

The company initially announced its plans to purchase the coal blender and handler in early August, just two months after sealing up a purchase of fellow blender and handler Lakeshore.

It expects to maintain current operations and staff for the company, which has a 30 million tonne per annum capacity. Due to its strategic river locations and convenient access to highways and railroads, KRT can deliver products to US ports in the Gulf Coast, East Coast and Great Lakes.

SunCoke said that the newly added operations should be immediately accretive to its cash flows and earnings, and projected $12 million in EBITDA on an annualized basis along with $6 million to distributable cash flow annually.

KRT’s portfolio included four coal handling facilities, the largest being the Ceredo terminal on the Ohio River in West Virginia that serves both domestic and international export markets using strong rail logistics that involve both CSX and Norfolk Southern.

KRT's other facilities are on the Big Sandy and Kanawha rivers in West Virginia and on Kentucky Highway 1185 near Louisa, Kentucky.

The firm also owned an idled liquids terminal on the Ohio River with a capacity of more than four million gallons of liquid storage.

“KRT is an excellent strategic fit with SXCP and advances our position in coal logistics,” chairman and CEO Fritz Henderson said in August.

“With this acquisition, we further integrate our cokemaking business with coal handling operations that currently support our Middletown and Granite City coke-making facilities.

“We also will broaden our customer base to serve companies in the coal, steel and public utility industries.

KRT was expected to handle about 15Mt of coal this year, about 56% of it metallurgical.

SunCoke’s acquisition of Lakeshore Coal Handling closed August 30.

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