Railroads have picked up where Keystone has delayed. Due to overwhelming demand, new transloading commodities hubs are being in built at the Canadian border for the express purpose for export to the US.
Grain, oil hubs worth $90m to be built near U.S.-Canadian border
NORTHGATE, Saskatchewan – Two large rail hubs, worth more than C$90 million, will be built near the U.S. border, according to a story by the Canadian Broadcasting Corporation on tuesday. The facilities are expected to handle both grain and oil for export into the United States.
The facilities are to be built by Ceres Global Ag Corporation. Ceres, based in Toronto, is an agricultural grain storage and supply chain company, and presently operates 15 grain storage facilities in the U.S. and Canada. Ceres is partnering with grain marketing company Scoular on the project, which it describes as a commodities logistics hub. The hub will consist of two rail loop facilities, each capable of handling unit trains up to 120 cars in length. One loop will be dedicated to grain shipment, while the other will be dedicated to transloading oil. Both facilities will connect to the BNSF Railway.
The oil facility will have a dramatic impact on the volume of Canadian oil entering the United States. According to the CBC story, the oil facility will have a 70,000 barrel per day capacity, which is is the same quantity as all present oil shipments south across the border. The grain facility is expected to have a capacity of 40 million bushels annually.
Construction is expected to begin this spring, and the first shipment from the facility is anticipated before the end of the year.