Canadian National Railway Co. (TSX:CNR) and Tundra Energy Marketing Ltd. announced that they will be constructing a crude oil rail car loading terminal close to Cromer, Manitoba. The terminal will be used by companies producing Bakken crude oil in Manitoba and Saskatchewan.
As quoted in the press release:
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, commented:
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.