Crude-by-rail business gaining speed

Apr 29, 2013 | 05:34 PM | Corinna Petry

Tags  crude oil, shipments, railroads, pipelines, terminals, Canadian National Railway, Jean-Jacques Ruest, Claude Mongeau Canadian Pacific Railway

CHICAGO — As the volume of crude oil shipments by rail continues to accelerate, more Class I railroads are teaming up with producers, refineries, pipeline and terminal operators, and others to move the product to consumption points.

Montreal-based Canadian National Railway Co. (CN) said that its crude-by-rail revenue jumped 300 percent in the first quarter of 2013.

"We expect a new crude loading terminal to open on our line in the coming months," chief marketing officer Jean-Jacques Ruest said during a recent earnings call, adding that CN and pipeline companies "cooperate where it makes sense."

"Refiners today (see) that getting product by rail allows them to get a price they can’t get from a pipe," he said. "(As) refiners invest in (tank car) fleets, pipeline companies are getting interested in doing multimodal with the railroad and investing in terminals."....

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