Savage Companies will build a rail terminal in North Dakota to help move crude oil from the prolific Bakken Shale to other regions, as railroads gain popularity as a mode of transport for U.S. oil supplies, the company.

The terminal, to be completed late this year, will be served by BNSF Railway , which controls 32,000 miles of track throughout North America, Savage spokesman Dave Wolach said.

BNSF railroads could eventually carry “up to tens of thousands of barrels a day” of Bakken crude from the terminal to major hubs in states like Oklahoma, Louisiana or elsewhere, Wolach said.

Rail links at Bakken could help alleviate bottlenecks for shipments of crude from the region, as well as allowing service providers to ship in equipment and provisions for oil and gas development.

With few pipeline options and scarce refining capacity in the region, rail transport is becoming popular for shipping crude out of Bakken, where output has more than tripled to over 300,000 barrels a day over the past few years alone.

Among the other companies shipping crude by rail from Bakken are Nustar Energy LP and EOG Resources.

Salt Lake City-based Savage, a logistics and energy industry service company, said it will build the terminal on land owned by partner Yellowstone Ethanol LLC. Financial terms were not disclosed.

The terminal will include tankage for crude oil storage, although the exact configuration has yet to be decided upon, Wolach said. (Reuters)