CP Rail weighing deals to boost crude-by-rail

Reportedly, the Canadian railway company is anticipating revenue growth in the mid single digits in 2018, boosted by strong worldwide demand for potash, as well as well as strength in energy and chemicals. The company reportedly said that it expects better pricing this year as well, due to tighter capacity, adding that adjusted earnings per share growth would be in the low double digits.

According to Reuters, Canadian crude-by-rail shipments increased last year, suggesting that more oil is being pushed onto railroads due to tight pipeline capacity. Nonetheless, the country’s railway executives are reportedly remaining careful about crude-by rail demand after they were forced to lower rates for shipping crude in 2015 because of a fall in global oil prices.

Keith Creel, the Chief Executive of CP, noted that, in order to protect against any future oil price decline, the company is looking for customers that have business in both crude and other lines. The company also claims that there is potential for higher pricing in 2018 as capacity gets tighter on growing demand.

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