The new service is part of CN’s plan to develop new markets for northern Alberta crude oil on the east side of the Mississippi River near the Gulf of Mexico. CN is also moving chemicals from the Chicago area to the LBC Tank Terminals facility at Geismar, which is home to a large concentration of petrochemical industries.

Russ Crawford , vice-president, marketing, Americas, at LBC Tank Terminals, said: “The expansion of the Sunshine storage capacity by 160,000 barrels, with additional rail unloading spots, steaming spots and increased storage capacity, is another step in our long-term global growth program. It will help us accommodate the rise in customer demand as a response to the growth in the movement of heavy crude oil and fuel oil products. CN’s service to our facility is a key part of our growth plan.”

LBC Tank Terminals’ Sunshine facility is located near two of the largest heavy crude refineries in Geismar and various pipeline assets and marine terminals.Jean-Jacques Ruest, CN executive vice-president and chief marketing officer, said: “Louisiana terminals on the east shore of the Mississippi River are a good fit for heavy crudes.
CN is the natural supply chain partner to help connect northern Alberta with desirable markets on the U.S. Gulf coast.

“CN provides direct, efficient single-line service from northern Alberta to the Gulf Coast, and we are pleased to be working with companies such as LBC Tank Terminals to move heavy crude oil volumes to the Gulf for our customers. Crude oil by rail is one of CN’s fastest growing businesses. We moved more than 30,000 carloads of crude last year, and we believe we have the scope to double this business in 2013.”

The expansion of the LBC Tank Terminals Geismar facility is expected to be completed by October 2013 and will eventually result in total storage capacity of close to three million barrels.