CHICAGO North American railroads recorded a 37.8-percent
year-on-year increase in petroleum product shipments in 2012,
with the U.S. carloads total moving up more than 46 percent,
according to the Association of American Railroads.
Norfolk Southern Corp., Norfolk, Va., saw crude oil shipments
rise 9 percent in the fourth quarter and is ramping up service
for crude oil traffic from the Bakken and Canadian oilfields to
Eastern refineries, chief marketing officer Donald W. Seale
said in a recent earnings call.
We see a material opportunity in crude oil, Seale
said, adding that the trend will likely accelerate
in 2013. Norfolk Southern ships steel to the Marcellus and
Utica shale plays. We see opportunities for the tubular
steel business to grow, he said.
CSX Corp. Inc., Jacksonville, Fla., averaged seven to nine
trains of crude oil per week during the fourth quarter,
chairman, president and chief executive officer Michael Ward
told investors last month. We expect that (metric) will
increase in 2013: The energy, petroleum-related products and
frac sand business is up, he said.
We heard an announcement of one ethylene cracker (steam
cracking operation) being located on CSX (lines) and possibly a
second one. We have two fractionators that are coming online in
the first quarter in West Virginia, he said.
So petroleum-related products will be a very positive
number, he added.