CN and Tundra Energy Marketing to construct crude oil rail car
loading terminal in Manitoba
CALGARY,
Oct. 18, 2012 /CNW Telbec/ - CN (TSX:
CNR) (NYSE: CNI) and Tundra Energy Marketing Limited announced
today they have signed a memorandum of understanding to construct a
crude oil rail car loading terminal near Cromer, Man., to meet the needs of Bakken
crude oil producers in Manitoba
and Saskatchewan.
The terminal will initially load 30,000 barrels of crude oil per
day into rail cars - the equivalent of more than 50 tank cars worth
- starting in the second quarter of 2013. The facility will have
the potential to accommodate a unit train of 100 tank cars, with
each train carrying approximately 60,000 barrels per day of crude
oil.
Bryan Lankester, president of
Tundra Energy Marketing, said: "This project, combined with 410,000
barrels of oil storage currently under construction at our terminal
in Cromer - a six-fold increase in
existing capacity -- will provide us with access to alternative
North American markets for Williston Basin crude oil over CN's
network at a time when there is inadequate pipeline takeaway
capacity. Our Cromer location at
the most easterly point of crude oil production in Canada should provide a market advantage to
our crude oil producers and shippers."
Jean-Jacques Ruest, CN executive vice-president and chief
marketing officer, said: "We are pleased to be a key supply chain
enabler for Tundra Energy Marketing. CN will help Tundra's
customers reach markets with good net-backs for their crude. And
further growth will be part of the story - the Cromer transload terminal is expandable, with
the potential to handle complete crude oil unit trains of more than
100 cars, which will generate greater efficiencies and market reach
for Canadian crude oil.
"Working closely with companies such as Tundra Energy Marketing
is making the transportation of crude oil one of CN's fastest
growing businesses. We expect to move more than 30,000 carloads of
crude oil in 2012, and we believe we have the scope to double this
crude oil business next year."
About Tundra Energy
Tundra Energy Marketing handles crude oil on behalf of producers in
the Williston Basin, including its parent company, Tundra Oil &
Gas Partnership, which has been an active driller in the area for
the past 32 years.
About CN
CN - Canadian National Railway Company and its operating railway
subsidiaries - spans Canada and
mid-America, from the Atlantic and Pacific oceans to the
Gulf of Mexico, serving the ports
of Vancouver, Prince Rupert, B.C., Montreal, Halifax, New
Orleans, and Mobile, Ala.,
and the key metropolitan areas of Toronto, Buffalo, Chicago, Detroit, Duluth,
Minn./Superior, Wis.,
Green Bay, Wis., Minneapolis/St. Paul, Memphis, and Jackson, Miss., with connections to all points
in North America. For more
information on CN, visit the company's website at www.cn.ca.
Forward-Looking Statements
Certain information included in this news release constitutes
"forward-looking statements" within the meaning of the United States Private Securities
Litigation Reform Act of 1995 and under Canadian securities laws.
CN cautions that, by their nature, these forward-looking
statements, including statements related to the growth of the crude
oil transportation market, involve risks, uncertainties and
assumptions. The Company cautions that its assumptions may
not materialize and that current economic conditions render such
assumptions, although reasonable at the time they were made,
subject to greater uncertainty. Such forward-looking statements are
not guarantees of future performance and involve known and unknown
risks, uncertainties and other factors, which may cause the actual
results or performance of the Company or the rail industry to be
materially different from the outlook or any future results or
performance implied by such statements. Important factors that
could affect the above forward-looking statements include, but are
not limited to, the effects of general economic and business
conditions, industry competition, inflation, currency and interest
rate fluctuations, changes in fuel prices, legislative and/or
regulatory developments, compliance with environmental laws and
regulations, actions by regulators, various events which could
disrupt operations, including natural events such as severe
weather, droughts, floods and earthquakes, labor negotiations and
disruptions, environmental claims, uncertainties of investigations,
proceedings or other types of claims and litigation, risks and
liabilities arising from derailments, and other risks detailed from
time to time in reports filed by CN with securities regulators in
Canada and the United States. Reference should be made to
"Management's Discussion and Analysis" in CN's annual and interim
reports, Annual Information Form and Form 40-F filed with Canadian
and U.S. securities regulators, available on CN's website, for a
summary of major risks.
CN assumes no obligation to update or revise
forward-looking statements to reflect future events, changes in
circumstances, or changes in beliefs, unless required by applicable
Canadian securities laws. In the event CN does update any
forward-looking statement, no inference should be made that CN will
make additional updates with respect to that statement, related
matters, or any other forward-looking statement.
SOURCE CN