CP expands Saskatchewan Bakken rail shipments

Canadian Pacific 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 shortline 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 is investing more than $90 million (US$88.5 million) to enhance capacity on its U.S. mainline south of Saskatchewan, through North Dakota and into Minnesota to handle anticipated increased Bakken crude shipments. This includes upgraded track and sidings.