Thursday, July 11, 2013

CP, K+S Potash sign deal on rail logistics

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Canadian Pacific and K+S Potash signed an "exclusive long-term volume-based contract" Wednesday, July 10, 2013, for the transportation of potash products from K+S' Legacy Site, CP said Thursday.

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 U.S. markets. The contract was signed in K+S Potash Canada's headquarters in Saskatoon, Saskatchewan's largest city.

"We are glad to have found Canadian Pacific as the perfect partner and strategic fit for our transportation needs in Canada. Canadian Pacific offers an excellent logistics service and we are looking forward to this long-term partnership," said K+S Potash Canada President and CEO Dr. Ulrich Lamp.

"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 COO Keith Creel. "The capacity, flexibility and market access of CP's network on our Western corridor, as well as efficient route options into the United States, ensures a growth opportunity for both companies."

Production from the mine is planned for the summer of 2016. In order to accommodate the transportation needs of the Legacy site, CP says it will build an exclusive rail spur to provide access to K+S Potash Canada's Legacy Site.