Runaway Rise in Canada’s Crude-by-Rail Transport

CEIC Macro Watch Global - November 28, 2014 The transport of crude oil on Canadian railways has been thriving over the past years as oil companies look for alternatives to the congested and limited export pipelines. Total fuel oil and crude petroleum carried by the railways rose sharply to 13.5 million tonnes in 2013, the highest to date, from 9.2 million tonnes in 2012. Prior to 2011, crude oil transported by railways was less than 5.5 million tonnes each year as railways were mainly used as a stop-gap solution. As approval of a new transport pipeline stalls, railway has become an essential method of transporting crude oil. The rapid adoption can be seen in traffic carried, which increased by 32.5% year-on-year to 1.2 million tonnes in August 2014, marking its 35th consecutive month of double-digit growth. Although pipelines generally have lower cost, railway transport has advantages such as flexibility of delivery to multiple destinations and shorter shipping time. New facilities and expansion in rail-loading capacity further enhance the utilization of the railways for crude oil shipments. By Catherine Joy Rumbines in Philippines - CEIC Analyst Discuss this post and many other topics in our LinkedIn Group (you must be a LinkedIn member to participate). Request a Free Trial Subscription. Back to Blog
1st December 2014 Runaway Rise in Canada’s Crude-by-Rail Transport