Inside Logistics

Crude oil shipments begin

Oil being shipped by rail from Saskatchewan


February 6, 2012
by MM&D staff

CALGARY: A new transload facility has begun shipping crude oil from Saskatchewan by rail.

Canadian Pacific is using its North Main Line infrastructure to move the crude from Lloydminster, Saskatchewan on behalf of San Antonio, Texas-based NuStar Energy LP. And this is just the first step in NuStar’s crude-by-rail plans. The company has already announced that it intends to expand operations later this year.

A Goulet Trucking affiliate, Torq Transloading, headquartered in Shaunavon, Saskatchewan, will operate the new facility.

In a statement, NuStar president and CEO Curt Anastasio explained why NuStar chose this method of transportation.

“Moving Canadian crude through CP’s North American network is a great complement to our asset base, which includes terminals and a large and expanding fleet of 1,700 coiled and insulated rail cars. We believe that moving undiluted heavy Canadian crude by rail to coastal markets is an economically viable solution that brings added value to the end users, as well as the producers in Canada.”

The oil is destined for NuStar’s Gulf Coast and northeastern US terminals.

The transloading process involves the use of a specialized pump and closed-loop hose system, which transfers the oil from trucks to purpose-designed rail cars.