Canadian Pacific Railway Enters Into Long Term Potash Agreement With Canpotex
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Canadian Pacific Railway (CP) and Canpotex have entered into a ten year agreement. Under the agreement, CP will be Canpotex’s principal Canadian railway, transporting a large majority of potash shipments to Canpotex’s main terminal in Vancouver, British Columbia. In addition, in conjunction with Union Pacific, CP will transport all Canpotex potash shipments to Portland, Oregon.
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. Improvements made under CP’s Multi-Year Plan are reducing average route miles and improving the capacity and responsiveness of the CP network. CP’s infrastructure enhancements are part of its four-year capital investment program, approved by the Board of Directors in the fall of 2010.
“Selection of 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 realize our growth objectives,” said Steve Dechka, Canpotex’s president and CEO.
“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. We are now running potash trains up to 170 rail cars in length, further improving service, capacity and efficiency,” said CP’s President and CEO Fred Green.
“CP is pleased to provide the resource and infrastructure commitments necessary to support Canpotex’s continued growth. To better serve key customers like Canpotex, CP recently announced a $1.1 billion to $1.2 billion capital program for 2012 that includes the second phase of our $250 million north main line project. These value-enhancing investments position Canadian Pacific for long-term growth with strategic customers,” added Mr. Green.
About Canadian Pacific
Canadian Pacific operates a North American transcontinental railway providing freight transportation services, logistics solutions and supply chain expertise. Incorporating best in class technology and environmental practices, CP is re-defining itself as a modern 21st century transportation company built on safety, service reliability and operational efficiency.
To stop by Canadian Pacific’s website, CLICK HERE
To stop by Canpotex’s website, CLICK HERE
