New Di-Corp terminal will accommodate rapid growth in frac sand demand from oil and gas industry
July 3, 2013
/PRNewswire/ - 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
The new 20-acre facility being built by Di-Corp of
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.
, vice-president of marketing at Di-Corp, a leading distributor of specialty chemicals, parts and accessories serving mining and drilling industries in
the United States
, said: "We are very pleased to be working with CN on this project in northwestern
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
Basin to destinations in
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,
and elsewhere greater supply chain efficiencies and new market opportunities."
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 out.
CN is investing significantly in its frac sand franchise. CN announced last month it was accelerating work on the
-upgrading of a 74-mile rail line between
, to increase car-loading capacity and train velocity for growing frac sand supply chains. In 2012, CN spent
to restore a 40-mile rail line between
, to serve the frac sand market.
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
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
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
Prince Rupert, B.C.
, and the metropolitan areas of
Green Bay, Wis.
, with connections to all points in
. For more information on CN, visit the company's website at
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 performance implied by such statements.