May 23, 2018 / 1:40 PM / a year ago

CN plans to ship crude in late 2018 at "very favorable pricing"

MONTREAL, May 23 (Reuters) - Canadian National Railway Co plans to use some additional capacity expected at the end of 2018 for its crude business, which it plans to "lock in for some time" at "very favorable pricing," the company's Chief Financial Officer said on Wednesday.

"We've taken the capacity will come in in the second half of the year to actually lock in crude business at very favorable pricing and to lock it in for some time with some volume commitments," CN CFO Ghislain Houle said at the Wolfe Research transportation conference.

Canadian railway executives have remained cautious about rising crude-by-rail demand after they were forced to slash rates for shipping crude in 2015 due to a rout in global oil prices.

Reporting By Allison Lampert

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