Canadian Pacific Railway Ltd. said it will spend more than C$90 million ($89 million) to boost trainload shipments of crude pulled from the Bakken formation in Saskatchewan and North Dakota.
The railroad will move more than 13,000 carloads, each carrying about 650 barrels of light crude oil, from the North Dakota Bakken this year, almost quintupling last year’s shipments, said Ed Greenberg, a CP spokesman in Minneapolis. The Calgary-based company expects crude shipments to grow to 70,000 cars annually.
CP opened a rail-loading facility in southern Saskatchewan today, its second for Bakken crude in the province. The facility, 25 miles (40 kilometers) from the U.S. border, allows railcars to be loaded from trucks and will be operated by closely held Bulk Plus Logistics LP, the company said in a statement.
“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 Tracy Robinson, CP’s vice president of energy and merchandise in Calgary. “The model that we developed in North Dakota is proven and we’re now bringing that north.”
Producers have turned to rail shipments to move Bakken crude because of a lack of large pipelines in the isolated region. North Dakota oil output jumped 28 percent to 464,121 barrels a day in September from a year earlier, according to state statistics. Companies including Enbridge Inc. and TransCanada Corp. have proposed lines to carry Bakken crude to U.S. markets.
CP operates a railcar-loading facility in Dollard, Saskatchewan, 280 miles west of Estavan.