CALGARY, Dec. 7, 2011 /PRNewswire/ - Canadian Pacific
(TSX: CP) (NYSE: CP) is expanding the transportation of crude oil
by rail from the Saskatchewan
Bakken Formation.
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. This is in addition to railcar
loads already moving out of the Dollard,
SK transload facility, located on the Great Western Railway,
a short line partner of Canadian Pacific. This oil is
destined to various refineries in both Canada and the
United States.
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. In the past three years CP has demonstrated its
ability to deliver crude oil by rail. Volumes of rail
shipments out of North Dakota, for
example, have grown from roughly 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.
"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."
CP provides crude shippers with supply chain options that are
flexible, reliable, and offer short lead times from production to
transportation. Working with CP's Energy Development
Team, new potential crude by rail shippers in Saskatchewan have been using CP service to
test viability of rail transport to their ultimate end
terminals.
"The Bakken Formation represents significant growth
opportunities for the people of Saskatchewan and those involved in the
development of this emerging market," said Saskatchewan Energy and
Resources Minster Bill Boyd. "I'm certain that CP's
experience and leadership in crude by rail transportation will
prove effective in helping Saskatchewan producers with similar solutions,
allowing them rapid entry into new markets."
CP is investing more than $90
million to enhance capacity on its U.S. main line south of
Saskatchewan, through North Dakota and into Minnesota to handle anticipated increased
Bakken crude shipments. This includes upgraded track and
sidings.
Canadian Pacific is the only North American railway to serve the
Alberta Industrial Heartland, the Bakken Formation, and the
Marcellus Shale. As well, CP is the only class 1 to connect
the energy hubs of Alberta and the northern plains to the northeast
U.S.
Of the 140 million tons of freight shipped annually on CP,
hundreds of thousands of carloads are directly related to energy
production and distribution. This includes crude oil,
sulphur, fuels, diluents and materials key to the energy industry
such as pipe and frac sand.
Note on forward-looking information - Canadian
Pacific
This news release contains certain forward-looking statements
relating but not limited to our operations, proposed investments,
anticipated financial performance and business prospects.
Undue reliance should not be placed on forward-looking information
as actual results may differ materially.
By its nature, CP's forward-looking information involves
numerous assumptions, inherent risks and uncertainties.
Forward-looking statements are not guarantees of future
performance. Factors that could affect forward-looking
information include, but are not limited to: changes in business
strategies; general North American and global economic, credit and
business conditions; inflation; currency and interest rate
fluctuations; the availability and price of energy commodities; the
effects of competition and pricing pressures; industry capacity;
shifts in market demand; changes in laws and regulations, including
regulation of rates; changes in taxes and tax rates; actions by
regulators; potential increases in maintenance and operating costs;
uncertainties of litigation; risks and liabilities arising from
derailments; timing of completion of capital and maintenance
projects; currency and interest rate fluctuations; technological
changes; and various events that could disrupt operations,
including severe weather conditions, flooding, earthquakes, labour
disputes, risks and liabilities arising from derailments as well as
security threats and governmental response to them. Other
risks are detailed from time to time in reports filed by CP with
securities regulators in Canada
and the United States.
Reference should be made to "Management's Discussion and Analysis"
in CP's annual and interim reports, Annual Information Form and
Form 40-F for a summary of major risks.
Except as required by law, CP undertakes no obligation to update
publicly or otherwise revise any forward-looking information,
whether as a result of new information, future events or
otherwise.
About Canadian Pacific
Canadian Pacific (TSX:CP)(NYSE:CP) operates a North American
transcontinental railway providing freight transportation services,
logistics solutions and supply chain expertise. Incorporating
best-in-class technology and environmental practices, CP is
re-defining itself as a modern 21st century transportation company
built on safety, service reliability and operational efficiency.
Visit cpr.ca and see how Canadian Pacific is Driving the Digital
Railway.
SOURCE Canadian Pacific