Economy

Railroad venture boosts number of oil trains in Minnesota

The Canadian Pacific railroad and the oil terminal's developer say a new technology makes the crude less hazardous.

By Mike Hughlett Star Tribune | OCTOBER 17, 2021 — 5:00PM

A new Canadian railroad venture is sparking a significant increase of 15 to 20 oil trains that run through Minnesota each month. ... Canadian Pacific Railway's specialized new Canadian crude cargoes run on its main line, which bisects the Twin Cities. And the Canadian rail giant's recent deal to purchase a major U.S. railroad will likely make its new oil service even more appealing to shippers.

Oil-by-rail has stoked safety concerns in Minnesota and elsewhere since 2013 when an oil train in Quebec caught fire and exploded, killing 47 people.Since then, several more oil trains in North America have derailed and spilled, some catching fire.

Canadian Pacific declined to say how many of the new oil trains it's currently running. But during a conference call with analysts in July, the railroad's chief marketing officer said he expects "business to ramp up to 15 to 20 trains per month during the third quarter," which ended Sept. 30. Their destination: Port Arthur, Texas.

Canadian Pacific and the company behind the new Alberta, Canada, rail venture, USD Partners, say they're using a new technology that makes shipping oil safe enough it need not be categorized as a flammable hazardous cargo. ... "From an innovation, sustainability and safety perspective, this is a game changer," Canadian Pacific CEO Keith Creel said in 2019 when the project was announced.



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Mike Hughlett covers energy and other topics for the Star Tribune, where he has worked since 2010. Before that he was a reporter at newspapers in Chicago, St. Paul, New Orleans and Duluth.

mike.hughlett@startribune.com | 612-673-7003