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Rail News: Canadian National Railway - CN

CN, LBC Tank Terminals to increase flow of crude oil through Louisiana facility

CN yesterday announced plans to increase shipments of heavy northern Alberta crude oil through LBC Tank Terminals' expanded Sunshine terminal in Geismar, La., beginning this month.

The new service is part of CN's effort to develop new markets for northern Alberta crude oil on the east side of the Mississippi River near the Gulf of Mexico. The Class I also is moving chemicals from the Chicago area to LBC Tank Terminals' Geismar facility, which is located near two large heavy crude refineries, various pipeline assets and marine terminals.

"Louisiana terminals on the east shore of the Mississippi River are a good fit for heavy crudes," said Jean-Jacques Ruest, CN's executive vice president and chief marketing officer, in a prepared statement. "Crude oil by rail is one of CN's fastest growing businesses. We moved more than 30,000 carloads of crude last year, and we believe we have the scope to double this business in 2013."

LBC Tank Terminals expects to complete an expansion at the Geismar facility by October and eventually increase the terminal's crude storage capacity to nearly 3 million barrels.

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