28 May 2007
Canadian Pacific Seeks Approvals to Better Service Alberta's Oil Sands Development
Canadian Pacific announced today it has sought regulatory
approval to construct rail lines to serve planned and existing bitumen upgraders northeast of Edmonton in Alberta's developing
Industrial Heartland.
"Acquisition of the necessary land to assemble the rail right-of-way was a strategically important initiative for
CP," said CP President and CEO Fred Green. "It strengthens CP's commitment to the growth objectives of the oil sands
industry, contributes to lasting economic benefits for the Province of Alberta, and provides significant scope for CP shareholder
value creation."
The railway has made arrangements for 16 miles of right-of-way that will provide the ability to develop direct rail
service to industries locating on either side of the North Saskatchewan River. The "project description," the first step in
the regulatory process, will be filed with the Canadian Transportation Agency immediately.
"CP's expansion will provide rail access to new markets for the industries which have made, or will make, the decision to invest
in the Industrial Heartland," said Green. "Our objective will be to build in tandem with the oil sands upgraders and related
businesses to create a new network of rail access and strengthen the industry's supply chain competitiveness in world markets."
To lay the foundation for this significant multi-year growth initiative, CP will immediately invest $15 million in capital
for new infrastructure to increase fluidity and distribution and logistics capacity. CP will first offer expanded transload
capabilities for in-bound construction materials, including dimensional shipments required by the upgraders.
"Our vision is to create a rail network focused on the movement of by-products created from upgraders in the
Industrial Heartland which include sulphur, petroleum coke, asphaltene, and various liquids and gases," said Ray Foot, CP's
Vice-President of Marketing and Sales, Merchandise. "While the market potential varies based on the timing of the
upgraders and facilities, the total rail market will be significant and we will work closely with producers and governments at all
levels to pace the right level of capital investment to new business opportunities."
"The added benefit of this expansion offers numerous community and environmental benefits to residents, the energy sector, and the
community," said Foot. "A single train can replace as many as 280 trucks. This project will significantly reduce traffic
congestion, noise, and environmental impact in the area."
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