The company will build about 20 storage tanks of the total 51 during phase one construction that are scheduled to start operating in October 2013, while the remaining tanks are expected to be installed in the following six months.
A two-berth ship dock and 12 barge berths are also scheduled to start offering services from the same month.
Kinder Morgan Terminals president John Schlosser said, "We are pleased commercial operations have begun which provide the market with a unique, deepwater terminaling solution that provides high-speed loading and improved barge and ship access to the Texas Gulf Coast for the export and import of various refined products."
BOSTCO oil terminal is expected to have total capacity of 7.1 million barrels as well as capable of handling ultra low sulfur diesel, residual fuels and other black oil terminal services.
The company has also started the phase two of construction at BOSTCO, which includes six units of 150,000-barrel ultra low sulfur diesel tanks, additional pipeline connectivity and high-speed loading at a rate of 25,000 barrels per hour.