Canadian Pacific Railway Limited (CP) announced a 10-year agreement with Canpotex Limited, effective July 1, 2012.  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, B.C.  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. 

“The 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 potash supply chain,” said CP’s President and CEO Fred Green. “We are now running potash trains up to 170 railcars in length, further improving service, capacity and efficiency.”

Mr. Green added “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.”