Canadian Pacific Railway signs long-term potash agreement

23 January 2012 17:05  [Source: ICIS news]

LONDON (ICIS)--Canadian Pacific Railway Ltd (CP) has signed a new 10-year agreement with Canadian potash marketer Canpotex to be its principal railway, transporting a large majority of potash shipments to Canpotex’s main terminal in Vancouver, CP announced on Monday.

In addition, in conjunction with Union Pacific, CP will transport all Canpotex potash shipments to Portland, Oregon.

The 10-year agreement commences on 1 July 2012. Terms and conditions were not disclosed.

To move Canpotex’s potash more efficiently and reliably, CP has enhanced the infrastructure of its north main line and western corridor, which handle potash service originating from 10 Saskatchewan mines, the company said in a statement.

“Selecting CP to move the majority of our product to port is a reflection of the strength of our partnership and CP’s ongoing commitment to efficiency in the supply chain and in helping to realise our growth objectives,” said Steve Dechka, president and CEO of Canpotex.

“CP is pleased to provide the resource and infrastructure commitments necessary to support Canpotex’s continued growth,” said CP president and CEO Fred Green.

“By upgrading our network, and through the ongoing implementation of our long train strategy, CP is continuing to strengthen our world-class potash supply chain,” Green added, noting that CP is now running potash trains up to 170 railcars in length.

Canpotex sells potash produced in Saskatchewan to overseas buyers. It is owned by fertilizer firms PotashCorp, Agrium and Mosaic.

By: Rebecca Clarke
+44 20 8652 3214

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