New Di-Corp terminal will accommodate rapid growth in frac sand demand
from oil and gas industry
EDMONTON, July 3, 2013 /CNW Telbec/ - CN (TSX: CNR) (NYSE: CNI)
announced today it will start serving a new state-of-the art frac sand
terminal north of Grande Prairie, Alta., starting in November 2013.
The new 20-acre facility being built by Di-Corp of Edmonton will have an
annual throughput capacity of 550,000 tons of frac sand and have three
tracks capable of holding 44 rail cars for unloading.
Trevor Derksen, vice-president of marketing at Di-Corp, a leading
distributor of specialty chemicals, parts and accessories serving
mining and drilling industries in Canada and the United States, said:
"We are very pleased to be working with CN on this project in
northwestern Alberta to help accommodate existing and expected growth
in frac sand demand in the Western Canadian Sedimentary Basin.
"CN is an outstanding partner, providing cost-effective and reliable
logistics services from frac sand origin in the Wisconsin Basin to
destinations in Western Canada."
Doug MacDonald, CN vice-president, Industrial Products, said: "Di-Corp
is an important customer of ours, and we expect to help the company
move more frac sand to energy markets. The new transloading terminal
will create additional offloading and storage capacity at destination
and also give our origin frac sand producers in the U.S. Midwest,
Manitoba and elsewhere greater supply chain efficiencies and new market
Frac sand is used by oil and gas industries in the hydraulic fracturing
process to hold shale fractures open and let natural gas and oil flow
CN is investing significantly in its frac sand franchise. CN announced
last month it was accelerating work on the US$33 million-upgrading of a
74-mile rail line between Wisconsin Rapids and Blair, Wis., to increase
car-loading capacity and train velocity for growing frac sand supply
chains. In 2012, CN spent US$35 million to restore a 40-mile rail line
between Ladysmith and Poskin, Wis., to serve the frac sand market.
MacDonald said: "Customers are at the forefront of CN's business agenda.
Through Operational and Service Excellence and continuing innovation,
CN is focused on creating value for its customers and transforming the
railway into a true supply chain enabler."
CN is a true backbone of the economy, transporting approximately C$250
billion worth of goods annually for a wide range of business sectors,
ranging from resource products to manufactured products to consumer
goods, across a rail network spanning Canada and mid-America, from the
Atlantic and Pacific oceans to the Gulf of Mexico. CN - Canadian
National Railway Company, along with its operating railway subsidiaries
-- serves the ports of Vancouver, Prince Rupert, B.C., Montreal,
Halifax, New Orleans, and Mobile, Ala., and the metropolitan areas of
Toronto, Chicago, Detroit, Duluth, Minn./Superior, Wis., Green Bay,
Wis., Minneapolis/St. Paul, Memphis, and Jackson, Miss., with
connections to all points in North America. For more information on CN,
visit the company's website at www.cn.ca.
Certain information included in this news release is "forward-looking
statements" within the meaning of the United States Private Securities
Litigation Reform Act of 1995 and under Canadian securities laws. CN
cautions that, by their nature, these forward-looking statements,
including statements relating to the growth of the frac sand market,
involve risks, uncertainties and assumptions. The Company cautions that
its assumptions may not materialize and that current economic
conditions render such assumptions, although reasonable at the time
they were made, subject to greater uncertainty. Such forward-looking
statements are not guarantees of future performance and involve known
and unknown risks, uncertainties and other factors which may cause the
actual results or performance of the Company or the rail industry to be
materially different from the outlook or any future results or
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Important risk factors that could affect the forward-looking statements
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from derailments, and other risks detailed from time to time in reports
filed by CN with securities regulators in Canada and the United States.
Reference should be made to "Management's Discussion and Analysis" in
CN's annual and interim reports, Annual Information Form and Form 40-F
filed with Canadian and U.S. securities regulators, available on CN's
website, for a summary of major risks.
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to reflect future events, changes in circumstances, or changes in
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event CN does update any forward-looking statement, no inference should
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