21 June 2013 22:25 [Source: ICIS news]
HOUSTON (ICIS)--Canpotex has completed the construction of a new railcar facility in Saskatchewan and has commenced operations that are expected to increase the efficiency of potash transportation to shipping terminals, the Canadian company announced on Friday.
Canpotex officials said the company invested Canadian dollar (C$) 60m ($57m, €43m) in the maintenance facility with a goal of enhancing the overall transportation performance of its 5,000 railcars.
Canpotex is the offshore marketing company for Saskatchewan potash producers of Agrium, Mosaic and PotashCorp and has been operating since 1972.
The newly unveiled facility is part of the company’s logistics strategy that was first initiated in 1996, the same time the first railcar specifically designed to carry potash was unveiled. Built by National Steel Car of Ontario, the potash container was crafted to withstand greater load capacity and allow Canpotex to operate longer sets of railcars and thereby transport larger quantities of potash.
“The movement of our potash from Saskatchewan to our export terminals on the west coast is the lifeline of our logistics, and this facility allows Canpotex to remain the world’s premier potash exporter," said Steve Dechka, Canpotex CEO.
Currently, worldwide demand for potash is estimated at 55m-60m tonnes/year, but there is a strong sentiment within the industry that those numbers could increase by as much as 16m tonnes over the next decade as agricultural producers attempt to keep increasing crop yields to feed an ever-expanding global population.
($1 = €0.76, $1 = C$1.05)
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