For its part, CP has enhanced the infrastructure of its north mainline 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 railroad says. CP's infrastructure enhancements are part of its four-year capital investment program, approved by the board of directors in the fall of 2010.
The 10-year agreement between CP and Canpotex commences July 1, 2012. Terms and conditions of the agreement are confidential. The agreement improves unit revenues for CP, including a fully responsive fuel mechanism, to support investments for continued excellence in service execution and capacity for further growth. The agreement also reflects increased efficiencies and cycle time benefits realized from the fewer miles to port and a new "hook and haul" arrangement.
CN's 10-year agreement is effective July 1, 2012. CN will haul via its southern British Columbia line a portion of what Canpotex exports through CN-served Neptune Terminals in North Vancouver, British Columbia. CN and Canpotex will also continue work on the feasibility of a potential new potash export gateway terminal in Prince Rupert, British Columbia, which would be served by CN over its northern B.C. line.