Canadian National will build a 29.2-mile branch to reach a massive, $7.5 billion potash mine that’s under construction about 85 miles east of Saskatoon, Saskatchewan.
The BHP Jansen mine – billed as the world’s largest – is expected to begin production in 2026. The mine will have an annual production capacity of 4.35 million metric tons of potash, which is enough to boost Canada’s already world-leading potash output by nearly 22%. The Australian mining company says the mine will be able to be expanded after Phase 1 is complete.
The mine, located about 7.5 miles north of Canadian Pacific Kansas City’s Sutherland Subdivision, will be served by both railways. A joint-use spur will lead from the mine’s loop tracks to a wye that will connect to the Sutherland Sub. CN’s new branch will cross CPKC on a diamond and connect with the joint-use spur.
The CN branch, which was approved by the Canadian Transportation Agency in July, will connect with the railway’s Watrous Subdivision at Milepost 102, just east of the town of Nokomis.
Main track construction is expected to begin next year, with completion scheduled for September 2025. Initial plans call for the mine to load up to four, 177-car unit trains for CN each week.
CN will haul the potash to British Columbia for export. The railway’s information page for the BHP spur project does not say whether the potash will be delivered to Vancouver or Prince Rupert, British Columbia, but Prince Rupert currently lacks a potash terminal.
The CN branch is the largest new railroad construction project in Canada since Canadian Pacific completed a 19-mile branch, the Belle Plaine Subdivision, to reach a new K+S Potash Canada mine near Bethune, Saskatchewan, in 2017. It was Canada’s first new potash mine in nearly 40 years.
Potash is primarily used in fertilizers that support plant growth and increase crop yields. Last year CP handled 160,000 potash carloads. CN doesn’t break out its potash volumes, but the commodity accounted for 13% of the railway’s $2.78 billion in grain and fertilizers revenue last year.
There appears to already be a CPKC branch west of the project area that I would think CN could use to connect to home rails. Or, let me guess, CN is still bitter about losing the bidding war for KCS, so they would rather spend many times more money to build their own branch than give CPCK any more business. *eyeroll*
Presume CPKC sees no problem with 177 car trains crossing its single-track transcontinental main line at grade eight times a week (four loaded, four return). What could possibly go wrong?
Do you really think that CN and CPKC can’t manage a diamond crossing with minimal daily traffic?
It’s not CPKC’s transcontinental main line.
Mark, you answered your own question.
BHP signed an agreement with Westshore Terminals to export the potash through Roberts Bank, back in 2021.
I don’t know why they want service from both railroads, other than to keep them fair with pricing.
Ever Since the Merger Canadian National just Wanted to Steal the Show
Like Keith Creel and CPkc didn’t. Giver everyone a break. Creel would have run through the streets naked if he thought he could give CN a bigger black eye. And in a sense that is exactly what he has done, and any other railroad that gets in his way, whether legally or any other way that might slow him down more than some of his circuitous routed grain trains have been ratholed for lack of proper investigation.
It will be a long time before the real winner is determined but I have a feeling it won’t be in CPkc’s favor…