CALGARY – Canada’s two largest railways on Monday both announced the signing of long-term deals with Canpotex Ltd., a company set up to export Canadian potash.
Calgary-based Canadian Pacific Railway Ltd. (TSX:CP) was first off the mark, announcing it had signed a 10-year agreement with Canpotex to carry what it said was “a large majority” of the potash to Canpotex’s main export terminal in Vancouver.
It will also carry all potash shipments to Portland, Ore., in conjunction with Union Pacific railway.
Montreal-based Canadian National Railway (TSX:CNR) later announced a 10-year agreement of its own with Canpotex.
It will haul product for export via its southern British Columbia line, a portion of which Canpotex exports through CN-served Neptune Terminals in North Vancouver.
CN and Canpotex will also continue work on the feasibility of a potential new potash export gateway terminal in Prince Rupert, B.C., which would be served by CN over its northern B.C. line.
Neither railway disclosed financial terms of the deals.
Canpotex is jointly owned by three of North America’s largest potash producers — Potash Corporation of Saskatchewan (TSX:POT), Agrium Inc. of Calgary (TSX:AGU) and The Mosaic Co. (NYSE:MOS).
On the Toronto Stock Exchange, CN stock was down 50 cent at $79.18 in late-day trading Monday, while CP stock was off 46 cents at $71.10.