(The Canadian Press) TORONTO _ The head of Canadian Pacific Railway Ltd. (TSX : T.CP, Stock Forum) (NYSE: CP, Stock Forum) says he believes there is enough room in the oil and gas industry for businesses to ship oil by rail and by pipeline.
However, Hunter Harrison told the company's annual meeting that the railway is ``proceeding cautiously'' in the business and doesn't plan to build long-term infrastructure for what could be a short-term boom.
CP Rail has been increasing crude shipments as Canadian oil producers look for ways to get their product to market and pipeline companies struggle to increase capacity quickly.
It was one of the key drivers behind the company's ability to deliver its best first-quarter results in its 132-year history.
Harrison says the Keystone XL debate has drawn attention to railway service as an alternative which offers extra flexibility.
CP Rail said it expects to double its deliveries of crude oil 12 months earlier than previously forecast.
The company said in a press release the board of directors has declared a quarterly dividend of 35 cents per share on the outstanding common shares.
CP Rail sharese fell 2% to $123.04 on Wednesday, leaving the company with a market cap of $22.5 billion, based on 174.7 million shares outstanding. The 52-week range is $132.92 and $71.61.