Rail company launches scheduled potash service for western Canada

04 May 2011 11:20  [Source: ICIS news]

LONDON (ICIS)--Canadian National Railway Company (CN) has increased the efficiency of potash transportation from mine to destination by implementing a new Scheduled Potash Service in western Canada, the company announced late on Tuesday.

The service, which includes a new potash fleet management team, enables closer collaboration between producers and customers to reduce cycle times for hopper cars by 25 %, reducing delivery time from mines in Saskatchewan to the potash hub in Winnipeg and out to export terminals.

The supply-chain efficiency gains have also provided CN with additional transport capacity.

“This improvement helps our potash customers get to market faster and move more bulk product,” Jean-Jacques Ruest, CN’s chief marketing officer and executive vice president, said.

The Potash Corporation of Saskatchewan (PotashCorp) – the world’s largest potash producer by capacity and primary provider of potash to the US – stands to benefit most from the new service.

In a conference call last week, PotashCorp CEO Bill Doyle told investors the company expected to produce and sell 10m tonnes of potash this year.

The timing of the Scheduled Potash Service is also ideal for the US. Because of a wetter-than-expected spring season for much of the corn belt, many farmers have postponed seeding and a rush for last-minute potash deliveries is expected before the end of the spring planting season.

Other companies will also benefit from the efficiency gains, including Plymouth, Minnesota-headquartered Mosaic, US-based fertilizer producer Agrium, and Canada’s Potash One, recently acquired by Germany-based K+S, with a new solution mine due online in 2015.

For more on potash and fertilizers, visit ICIS pricing fertilizers

By: Lauren Williamson
+44 (0) 20 8652 3214

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