fogg1703 wrote: While this is currently great news for either MMA or CN, I don't think the long term plans (at least the ones I have seen) involve unit crude trains eastward to Montreal or St John. If the Sarnia-Montreal pipeline is reversed, look for Western Canadian Crude by pipeline into Montreal and put on barges through the St Lawrence and around to St John unloading at Canaport.
The infrastructure is already there for Irving for maritime delivery as opposed to some major work needed to prepare for 80-100 car unit trains. Not out of the realm completely, but the economics to me would seem to favor a pipeline to barge as opposed to a pipeline to unit train from Montreal-St John. This all changes however if an all rail route from the West is the only option. And correct me if I'm wrong but CN already controls the lion's share of finished product west from Irving, so MMA may have its work cut out to try and capture this traffic.
I will have to disagree on some points.
A few weeks ago, I read an article that appeared in the Canadian Financial Post titled " As Pipelines Stall, Railways Keep oil Flowing ". I'll try and find the link to that story.
As I said in my last post, CP Rail and BNSF have quickly ramped up facilities to move oil from the Bakken sources.....both railways already had a major presence in the area to begin with. Last year CP moved 13,000 cars of Bakken crude and they project to increase that to 70,000. The rail tank cars on average each carry 650 barrels.
Irving has used rail for some time now, to move petroleum products from the St. John Refinery and yes, CN has played the major role in doing so. CN consists between St. John and Moncton N.B. are dominate with tank cars. The infrastructure already exists to handle oil at St. John by rail. Transferring product from pipeline at Montreal to barge, if that were to happen, I feel would slow down the delivery process, although the price of delivery certainly plays a role here also.
CN has a larger presence than CP in the Alberta Tar Sands Oil area but they haven't jumped into the fray as much as CP has, with the great expansion in the new traffic source, presented by crude oil. Again, if Irving brings increasing BAKKEN CRUDE to St. John by rail, CP becomes involved and that can only mean, increased traffic over the MMA.
Makes better sense for Irving to import crude oil from within Canada than from South America, as I believe their major source has been in the past. As far as shipping finished oil products west by rail over the MMA, remains to be seen.
One other point I'd like to make, a few weeks ago I listened to a news talk radio show involving today's Oil industry. The so called " industry oil expert " interviewee stated that pipelines are the only means to move crude to refinery, they must be built at all costs.......I think he needs to brush up on the facts.
CP marketing people have stated, rail will not replace pipelines but certainly rail can supplement the delivery of crude product.