TSX:CUS.DB.D - Post by User
Comment by
Nawaralsaadion Apr 22, 2014 9:43am
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Post# 22475787
RE:RE:a few posits
RE:RE:a few positsBlue,
I have been looking a bit into this matter (I am yet to form a firm conclusion), but it seems due to the natural gas switching caused by low prices and new pollution regulations, the North American rail network has lost a lot of its coal business (coal presents 41% of rail volume in North America), for some background you may read more here:
https://www.aar.org/keyissues/Documents/Background-Papers/Railroads-and-Coal.pdf
Rail companies are desperate to replace this lost coal volume, and thus oil is an ideal market to serve. Also for NATO specifically, unlike many other rail terminals in Alberta, NATO is served by both CN and CP, and this is a crucial advantage compared for example to Gibson’s unit train terminal that is served solely by CP.
Regards,
Nawar