CP Rail proceeding cautiously with oil by rail business: CEO
Expects to double deliveries of crude oil 12 months earlier than previously forecast
TORONTO—The head of Canadian Pacific Railway says he believes there is enough room in the oil and gas industry for businesses to oil ship by rail and by pipeline.
However, Hunter Harrison told the company’s annual meeting that the railway is “proceeding cautiously” in the business and doesn’t plan to build long-term infrastructure for what could be a short-term boom.
CP Rail has been increasing crude shipments as Canadian oil producers look for ways to get their product to market and pipeline companies struggle to increase capacity quickly.
It was one of the key drivers behind the company’s ability to deliver its best first-quarter results in its 132-year history.
Harrison says the Keystone XL debate has drawn attention to railway service as an alternative which offers extra flexibility.
CP Rail said it expects to double its deliveries of crude oil 12 months earlier than previously forecast.