In discussing how the business model at Canadian National Railway has changed over the last 10 years or so, Claude Mongeau, CEO at CN, recognized the importance of the supply chain.
At a time when the pipeline industry is facing opposition to new projects, rail is surging. In the span of months, executives who had never considered moving oil by train are not just tinkering with rail shipments, but embracing them. While these shipments are small for now, by one estimate rail could be carrying 100,000 barrels a day out of Canada by next year; others have suggested more than 75,000 barrels a day is already moving by train.