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Rail line investment to facilitate transportation of crude oil

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by Journal Of Commerce

Canadian Pacific is making a major investment to upgrade its United States main line south of Saskatchewan, in order to increase the transportation of crude oil by rail from the Bakken Formation.

Canadian Pacific is making a major investment to upgrade its United States main line south of Saskatchewan, in order to increase the transportation of crude oil by rail from the Bakken Formation.

“To move the crude by rail opportunities to the next level, CP will take what it has learned and the products developed in North Dakota and apply them in the emerging Saskatchewan and Alberta Bakken markets,” said CP Energy and Merchandise VP Tracy Robinson.

“The model we developed in North Dakota is proven and we’re now bringing that north. To fully capitalize on these opportunities, CP has established a specialized Energy Development Team to proactively position CP’s products and capabilities in this rapidly emerging market place.”

The company is investing more than $90 million to enhance capacity on its U.S. main line, which runs through North Dakota and into Minnesota to handle anticipated increased Bakken crude shipments.

This includes upgraded track and sidings.

CP is now increasing volumes of crude oil movement by rail out of the Saskatchewan Bakken oil formation through a new CP transload facility, operated by Bulk Plus Logistics in Estevan.

In the past three years, volumes of rail shipments out of North Dakota have grown from about 500 carloads in 2009 to more than 13,000 carloads in 2011.

This is expected to grow to 70,000 annual carloads in the future.

The Bakken Formation, encompassing sections of Saskatchewan and North Dakota, is a key area of focus for Canadian Pacific and part of the railway’s growing energy portfolio.

JOC NEWS SERVICE

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