K+S Potash Canada and Canadian Pacific signed an exclusive long-term volume-based contract on the transportation of potash products from K+S’ Legacy Site. The contract is for potash to be moved from the Legacy Site, near Moose Jaw and Regina in Saskatchewan, to a Western Canadian port of export for overseas destinations and via CP’s extensive network to domestic Canadian and US markets. The contract was signed in K+S Potash Canada’s headquarters in Saskatoon.
“We are glad to have found Canadian Pacific as the perfect partner and strategic fit for our transportation needs in Canada”, says Dr. Ulrich Lamp, President and Chief Executive Officer of K+S Potash Canada. “Canadian Pacific is extremely pleased to be a partner with K+S Potash Canada in providing the capability to move potash to market via our rail-direct network,” said CP President and Chief Operating Officer, Keith Creel.
K+S Potash Canada and Canadian Pacific are forming a long term partnership to ensure that the transport of product from the Legacy site to clients is both secure and competitive. Production from the mine is planned for the summer of 2016. In order to accommodate the transportation needs of the Legacy site, Canadian Pacific will be building an exclusive rail spur to provide access to K+S Potash Canada’s Legacy Site. Canadian Pacific also offers competitive opportunities in existing and identified markets for K+S Potash Canada.
K+S is putting its more than one hundred years of mining experience and expertise to work on the Legacy Project potash mine and production facility near Moose Jaw. It will be the first new greenfield potash mine built in Saskatchewan in nearly forty years. In the first two expansion phases of the new potash site, K+S will invest a total of $4.1 billion. Production from the mine is targeted for the summer of 2016, reaching the two-million-tonnes mark of production capacity at the end of 2017. Targeted maximum production capacity of 2.86 million tonnes per annum is scheduled to be achieved later. The Legacy Project will produce potash products primarily for markets in Asia, and the Americas, and will make a significant addition to K+S’ existing global production of 7.5 million tonnes of potash and magnesium products annually. K+S Potash Canada GP is part of the K+S Group, one of the world’s largest suppliers of standard and specialty fertilizers. In the salt business, K+S is the world’s leading producer with sites in Europe as well as North and South America. K+S offers a comprehensive range of goods and services for agriculture, industry, and private consumers, which provides growth opportunities in virtually every sphere of daily life. The K+S Group employs more than 14,000 people worldwide.
In 2012, CP carried 520,000 carloads of sulphur and fertilizer shipments representing seven per cent of its total number of carloads carried. At $2,938 per carload, CP’s 2012 freight revenue per carload for sulphur and fertilizers was the highest of any category, and exceeded by a wide margin its overall average of $2,079 per carload.