CP Rail boosts oil shipments from Canadian Bakken
CALGARY, Alberta (Reuters) - Canadian Pacific Railway Ltd CP.TO said on Wednesday it is expanding shipments of crude oil from Saskatchewan as part of a plan to take advantage of surging production from the Bakken shale oil region that straddles the Canada-United States border.
CP Rail said it is boosting volumes from a new transload facility in Estevan, Saskatchewan, which adds to shipments currently moving from another facility at Dollard, Saskatchewan.
The company said the move is part of an overall effort to move oil from the Bakken fields in both the province and across the border in the United States, where production increases have overtaken pipeline capacity.
On Tuesday, Enbridge Inc (ENB.TO: Quote) said it will spend $145 million to boost the capacity of its Berthold, North Dakota, oil terminal to handle an additional 80,000 barrels per day by rail.
Canadian Pacific, the country's second-largest railroad, said its shipments this year climbed to 13,000 carloads from 500 in 2009. It foresees 70,000 carloads at some point in the future.
It is spending more than $90 million to increase its capacity, including upgrading track and sidings, on its U.S. mainline through North Dakota and into Minnesota to handle the expected higher volumes, it said.
($1 = 1.01 Canadian)
(Reporting by Jeffrey Jones; Editing by Jeffrey Hodgson)
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