The D2 Organization (D2), a real estate development and investment firm, completed construction of a 240-car railyard for Braskem in Claymont.
The 13-acre, 240-car railyard is part of a 71-acre development owned by D2 that aims to spur economic activity by revitalizing the underused industrial property. The trackage is at the former General Chemical complex.
The project did not require a Coastal Zone Act permit. Delaware has made modifications to the Coastal Zone Act in an effort to spur development at former plant sites and reduce layers of regulation.
The rule changes recently went into effect. D2’s development plans are at least indirectly tied to modifications to the Coastal Zone Act.
Claymont is adjacent to the former Marcus Hook Sunoco refinery, which has attracted industries using Pennsylvania’s abundant natural gas supplies. Due to Coastal Zone regulations, companies have not attempted industrial development at abandoned plant sites in the Coastal Zone, even if redevelopment did not involve toxic products.
Braskem America stated that the company was drawn to the railyard site due to its location and convenience to rail, and highway access. Located 20 miles south of their U.S. headquarters in Philadelphia, Braskem will use the railyard to service their neighboring production facilities in Marcus Hook.
“Braskem needed a solution for improving rail access and thus facilitating additional rail capacity in order to optimize their distribution operations. The size and access of the Delaware River Works site allowed us to help them achieve those important objectives,” said Keith J. Delaney, president of D2 Organization.
Mark Nikolich, Braskem America CEO commented, “Since 2010, Braskem has been a committed partner to the Delaware Valley’s business and community development. Accordingly, we are proud to work with D2 around the economic redevelopment at the Delaware River Works. Our long-term rail-yard leasing agreement with D2 provides important enhancements to our transportation and logistics capabilities, contributing to the growth of our business and enabling Braskem to further support our operations across the region.”
Construction financing for the Delaware River Works site was obtained by D2’s transaction advisory team, D2 Capital Advisors (D2CA). D2CA secured a $19,995,000 loan to develop the railyard with financing provided by Fulton Bank.
Braskem America is an indirect wholly-owned subsidiary of Brazil-based Braskem S.A. The company is the leading producer of polypropylene in the United States, with six production plants located in Texas, Pennsylvania and West Virginia, an Innovation and Technology Center in Pittsburgh, and a new operation in Boston focused on leveraging developments in biotechnology and advanced materials.
For more information, visit www.braskem.com/usa.
