Radnor, Pa.—Jan. 30, 2013—Preferred Sands, a frac sand and proppant manufacturers, launched Preferred Pipeline, a full-service bulk proppant distribution system available to myriad industry suppliers. Preferred Pipeline leverages Preferred Sands’ extensive rail and trucking network to provide an efficient, centralized supply chain structure. By offering customized distribution and product fulfillment solutions, Preferred Pipeline immediately establishes a supplier’s presence at well sites and can meet all the needs for end users across North America.
“Preferred Pipeline was born from a growing need for a consolidated industry distribution network” said Michael O’Neill, Founder and Chief Executive Officer, Preferred Sands. “As the energy market has grown and matured, the supply chain has remained fractured, with proppant companies controlling their own distribution network. This caused a growing number of inefficiencies and skyrocketing fees. Preferred Pipeline is focused on offering customizable, turnkey solutions that will allow our customers to minimize significant rail car, trucking and terminal costs. This approach will also eliminate demurrage and the need for redundant inventories at multiple locations, while reaching a broader market and gaining greater customer exposure.”
Through its partnerships with best-in-class industry suppliers and terminal owners and operators, Preferred Pipeline creates a marketplace that offers end users the industry’s most extensive, high-quality product portfolio. Preferred Pipeline enables third-party suppliers to efficiently and rapidly distribute materials to well sites. Preferred Pipeline distributes products across all of North America, while providing same-day product availability in every sub basin in the U.S. and Canada.
“This is about creating cost savings through efficiency,” said O’Neill. “Our customers need 24-hour access—at a moment’s notice—to our products and our distribution network for their well sites. Tomorrow or next week simply isn’t good enough. By replacing the inefficient logistics networks that currently exist in our industry, Preferred Pipeline offers critical accessibility and allows our customers to be even more competitive in a market with ever-shrinking lead times.”