U.S. Silica to construct new frac sand facility in Wisconsin, Canadian
Pacific to be exclusive rail service provider
MINNEAPOLIS, MN, June 22, 2012 /CNW/ - Canadian Pacific Railway Limited
(TSX: CP) (NYSE: CP) and U.S. Silica Holdings, Inc. (NYSE: SLCA), today
announced a multi-year agreement for the movement of frac sand from
U.S. Silica's newest mining and processing facility in Sparta,
U.S. Silica is the second largest domestic producer of commercial
silica, a specialized mineral that is a critical input into oil and gas
shale production and various industrial and specialty products. The
Company is building a new frac sand facility located on the CP's rail
line in Sparta, Wisconsin that will produce high quality Northern White
sand for use in shale basins across the United States and Canada.
Under the agreement, CP will become the exclusive rail service provider
at this facility for the movement of U.S. Silica's frac sand to
destination markets. The design of the Sparta facility will allow U.S.
Silica to build unit trains of frac sand with a focus on shipments into
the Bakken shale in North Dakota to support the area's growing need for
proppant. The facility will produce and ship three different grades of
dry sand and is expected to be fully operational in the first quarter
Bryan Shinn, U.S. Silica's President and Chief Executive Officer, said
the company is "very excited to partner with the Canadian Pacific to
further enhance our extensive logistics capabilities. We plan to
deliver unit trains of high quality frac sand into the Bakken shale and
other basins throughout the U.S. and Canada. This new partnership will
provide U.S. Silica greater access to critical, rapidly growing
markets, and will significantly strengthen our overall offering."
"Canadian Pacific has proven expertise and has been serving the energy
industry in North America for many years. We are pleased to continue
to grow this important market through our partnership with U.S.
Silica," said Jane O'Hagan, Canadian Pacific Executive Vice-President
and Chief Marketing Officer, who noted CP's agreement with U.S. Silica
is an important component of the railway's growing energy strategy,
which focuses not just on outbound crude oil, but also on the flow of
input materials into shale and other energy developments."
"Our agreement with U.S. Silica leverages the strength of CP's network
through Wisconsin with service to key energy regions throughout North
America" said O'Hagan. "We are pleased to be in a position to provide
the capacity to our partners like U.S. Silica to respond to the strong
growth in the energy-related markets."
Canadian Pacific is the only North American railroad to serve the Bakken
Formation, the Alberta Industrial Heartland and the Marcellus Shale. In
addition, CP is the only Class I railway to connect the energy hubs of
the U.S. Midwest, Alberta and Saskatchewan to the Northeast U.S.
Through its network to the Northeast U.S. and through the Kansas City
gateway to the U.S. Gulf Coast, CP is able to partner with the energy
industry to facilitate growth in moving oil and energy-related
materials. Each year, CP moves hundreds of thousands of carloads of
energy-related products, including crude oil, sulphur, fuels, diluents
and materials key to the energy industry, such as pipe and frac sand.
About U.S Silica Holdings Inc.
U.S. Silica Holdings, Inc., a Delaware corporation, is the second
largest domestic producer of commercial silica, a specialized mineral
that is a critical input into the oil and gas proppants end market and
a variety of attractive industrial and specialty products end markets.
During its 112-year history, U.S. Silica Holdings, Inc. has developed
core competencies in mining, processing, logistics and materials
science that enable it to produce and cost-effectively deliver over 200
products to customers across these end markets. U.S. Silica Holdings,
Inc. is headquartered in Frederick, Maryland.
For more information on U.S. Silica contact: Anita Willis-Boyland at 301-682-0676 or Willis-Boyland@USSilica.com
About Canadian Pacific
Canadian Pacific (CP: TSX) (NYSE: CP) operates a North American
transcontinental railway providing freight transportation services,
logistics solutions and supply chain expertise. Incorporating
best-in-class technology and environmental practices, CP is re-defining
itself as a modern 21st century transportation company built on safety,
service reliability and operational efficiency. Visit cpr.ca and see how Canadian Pacific is Driving the Digital Railway.
SOURCE Canadian Pacific
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