New York New York USA - Two prominent rail executives said Wednesday they're not worried about the recent drop in oil prices, with CP's Hunter Harrison going so far as to say it could actually be a positive for the railway.
 
"It looks like it'll be overall pretty good for the economy, it'll be pretty good for Canadian exports," Mr. Harrison, chief executive at Canadian Pacific Railway Ltd., told a Credit Suisse conference in New York. "For our results in 2015 it's a non-event."
 
Fredrik Eliasson, chief financial officer at CSX Corp., said much the same thing earlier in the day.
 
"I don't think that's going to be an issue short-term, or frankly in 2015, based on what we've heard from our customers," Mr. Eliasson told the conference.
 
Railway shares have been hammered over the past few trading days on concerns that growth in their crude-by-rail businesses will slow as producers reevaluate their projects in light of the steep decline in oil prices.
 
However, stock prices rebounded Wednesday along with the price of oil, with CP's shares closing up 1.9 percent to $224.79 and CSX's rising 2.2 percent to US$37.26.
 
Mr. Harrison said he doesn't expect a "knee-jerk reaction" from oil producers and doesn't think any projects in the Bakken region of North Dakota will be halted.
 
"We signed a contract yesterday and people are beating on the door wanting more trains delivered next month, so there's some little inconsistencies in what you're hearing out there in the market," he said.
 
Mr. Harrison said energy-related products, including frac sand, make up 7 percent to 8 percent of CP's business, while Mr. Eliasson said crude accounts for about 2 percent of CSX's total volume.
 
Last month, CP revealed that it had approached CSX about a potential merger, but those talks led nowhere.
 
Both executives dismissed the possibility of a tie-up, even though Mr. Harrison has been a vocal advocate of industry consolidation.
 
"It doesn't seem to be the right time," Mr. Eliasson said, adding that regulators are unlikely to approve a merger between two major railways.
 
"I thought we made it clear that the deal was off and behind us," Mr. Harrison said.
 
The outspoken CP executive also had some harsh words for government regulators, saying they "can play havoc" with the rail industry if they're not careful.
 
He pointed to the derailment that killed 47 people in Lake Megantic as an example of human error that would have happened no matter what rules were in place.
 
"The individual didn't set the brakes that night. Why do you think another rule's going to get him to set the brakes?" he asked.
 
"More laws aren't going to be a deterrent unless you say, you violate them, we're going to hang you. That might be a deterrent."

Kristine Owram.