Hudson Asphalt Terminal Boosts Colorado Asphalt Supply, Economic Growth
BY Alix Kendall
The Hudson Asphalt Terminal (HAT), a new ground-up asphalt storage and distribution facility, is positioned to become a key supplier to the Colorado construction industry. Located at the BNSF Railway Logistics Center in Hudson, Colorado, the cutting-edge terminal will serve as a vital source of asphalt binder to area pavers in the Front Range, addressing local supply challenges and offering significant economic benefits. Cenovus Energy, a large North American oil and gas producer and refiner, is an important partner in the project as it provides a reliable supply of asphalt at the facility to help meet the growing demand for high-quality asphalt products in the region.
“Hudson Asphalt Terminal has been welcomed by the road construction industry as well as the community,” said Cenovus Director Asphalt & Industrial Products Martin Ray. “Cenovus is excited to expand to new markets, become a trusted supplier with area producers, and help support the region’s ongoing growth and construction needs with quality asphalt products.”
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HAT Project Origins
The HAT project is a strategic collaboration between multiple industry leaders, including Cenovus, BNSF Railway, ECF Inc., and Hudson Asphalt Terminal LLC. The initiative was driven in part by demand and changes in the Colorado market. These changes left the region’s construction and paving industries with limited access to asphalt binder, a critical material for infrastructure development.
As an established North American producer of refined products, Cenovus entered the project as a key partner, recognizing the asphalt supply gap and demand for reliable product in the region. Cenovus saw an opportunity to provide asphalt products that are stored at and distributed through the Hudson Asphalt Terminal as well as use its expertise in refining and asphalt production to ensure a steady flow of asphalt binder for construction companies in the Front Range region. This, along with the company’s established infrastructure, played a key role in ensuring the terminal can meet the market demand.
Hudson Asphalt Terminal LLC is responsible for operating the HAT and providing terminal services to area customers in a safe, responsible manner. At this time, the HAT supports two truck loading racks for outbound product.
Timeline and Development
The HAT officially broke ground on Sept. 25, 2023. HAT is a joint effort with ECF Inc., Columbia, Illinois, which specializes in asphalt terminal design and construction. ECF was tasked with building the facility, and Hudson Asphalt Terminal LLC, the operation of the facility. The project moved quickly from planning to execution, with the terminal receiving its first railcars of asphalt binder on July 10, 2024.
The terminal’s strategic location at the BNSF Railway Logistics Center offers graded, shovel-ready sites and advanced infrastructure, allowing for expedited development and helping the project meet its aggressive timeline.
With its completion, the HAT provides approximately 275,000 barrels of storage capacity, fed through two rail spurs with 20 railcar unloading spots, supporting two truck loading racks for outbound product.
Key Companies Involved
Several companies played a significant role in the development and operational planning of the HAT:
- Cenovus Energy: An integrated energy company with operations across the full value chain to develop, transport, produce and market crude oil and natural gas in North America and internationally. The company’s physically integrated upstream and downstream operations help mitigate the impact of volatility in the market by capturing value from production through to the sale of finished products, such as asphalt. Cenovus produces asphalt binder at its refining facilities and transports the product to the HAT for storage and distribution to Colorado’s construction industry.
- BNSF Railway: The Hudson Logistics Center is owned and operated by BNSF, which plays a pivotal role in providing the rail infrastructure necessary for the transportation of asphalt. BNSF’s established network and favorable freight contracts allow the terminal to receive asphalt by rail, reducing transportation costs and improving the efficiency of the supply chain.
- ECF Inc.: Responsible for the design and construction of the terminal, ECF Inc. leveraged its experience in building specialized asphalt facilities to ensure the terminal would meet the region’s storage and distribution needs. Their expertise was crucial to the fast-paced development of the facility.
- Hudson Asphalt Terminal LLC: Responsible for operating the facility and providing terminal services to area customers in a safe, responsible manner.
The terminal’s storage, railcar unloading and truck loading capacity will help address the supply challenges caused by the regional refiners transitioning to biofuel production. The terminal is designed to quickly distribute asphalt products to contractors and developers, reducing delays in the region’s construction sector.
Expected Economic Impacts
The HAT is expected to provide significant and far-reaching economic benefits for both the local and wider Colorado economies.
- Job Creation: The construction and recent start of operations at the terminal has already created many new jobs in Hudson and surrounding areas and will continue to generate employment opportunities through direct roles at the terminal, as well as indirect jobs in logistics, transportation and supply chain management.
- Enhanced Supply Chain Efficiency: The terminal’s storage, railcar unloading and truck loading capacity will help address the supply challenges caused by the regional refiners transitioning to biofuel production. The terminal is designed to quickly distribute asphalt products to contractors and developers, reducing delays and inefficiencies in the region’s construction sector.
- Cost Impact: By sourcing asphalt through Cenovus Energy’s asphalt supply at the HAT, contractors will reduce their dependence on a limited number of refineries and avoid price volatility caused by supply shortages.
- Economic Development: It is anticipated that the terminal will attract further business development to the BNSF Logistics Center, creating additional opportunities for local businesses and boosting the economic profile of the Hudson area.
Hudson Asphalt Terminal LLC is responsible for operating the HAT and providing terminal services to area customers in a safe, responsible manner. At this time, the HAT supports two truck loading racks for outbound product.
The HAT represents a vital investment in Colorado’s infrastructure, addressing critical supply chain gaps while supporting the region’s ongoing economic growth. The partnership between Cenovus, BNSF Railway, ECF Inc., and Hudson Asphalt Terminal LLC is an example of industry collaboration helping meet market demands to provide long-term benefits for local economies. By storing and distributing high-quality asphalt binder and streamlining regional supply chains, the HAT will be essential in the development of Colorado’s infrastructure for years to come.