Canadian Railroads > Directional Running for CN+CP export oil trains?

With the tightening sanctions on Venezuela's state oil company, the price of Canadian oil is rising.  But, many observers believe that the lack of capacity in the pipes and railroads will limit Canada's ability to extract maximum value. The construction of a meaningful pipe expansion is blocked by many forces, and the railroads are very congested. But, what if CN and CP sat down and worked out a directional running scheme for oil?  Similar to what they have in British Columbia for most operations.

Example, for eight months, CP hauls Alberta crude loads south to the US, and CN hauls back the empties with the same consists.  Crews may be flown or driven back to the sign up point as each railroad will have uneven flows. Then, for the succeeding eight months, CN hauls the loads, and CP retrieves the empties.  Over time, each would get afair shake of winter weather, grain congestion, etc.  By limiting the number of hundred car oil loads facing hundred car empties on the same line, the railroads would each decongest. A little.

 

You'd have to get the oil companies on board for this scheme to work, and I'd bet they would rather deal with 1 railroad rather then 2. Personally I can't see this scheme working.

-Trevor

CN and CP have different loading and end markets for crude, plus different oil products -- CP serves predominantly Bakken sources, while CN has a major origination in northern Alberta, region of heavy crudes requiring diluent to move. Thus directional running is not applicable.

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CP doesn't carry much crude oil out of Alberta?

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Furthermore, somebody else would have to be involved to get anything routed over CP to/from the Gulf Coast, because CP rails go no farther south than Kansas City.
 

toledopatch Wrote:
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> Furthermore, somebody else would have to be
> involved to get anything routed over CP to/from
> the Gulf Coast, because CP rails go no farther
> south than Kansas City.
>  

Thanks

How does CP get oil down to St James LA now?  Or did it lose that contract?

It's interesting to see all the activity as it appears the export pipe capacity won't be ready for years, and both CP and CN are clogged.

CP has lost all the oil out of the Bakken fields in North Dakota. All the oil that CP is currently moving is out of Hardesty, AB. It moves to Kansas City, MO where it is interchanged to KCS, BNSF, or UP. 

SOO6617 Wrote:
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> CP has lost all the oil out of the Bakken fields
> in North Dakota. All the oil that CP is currently
> moving is out of Hardesty, AB. It moves to Kansas
> City, MO where it is interchanged to KCS, BNSF, or
> UP. 

Thanks.

So any directional running arrangement would need more players

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