CALGARY — Canadian Pacific and potash export firm Canpotex have announced a new seven-year contract between the two firms, a successor to a current 10-year agreement that expires in 2022. The new agreement runs through 2028.
“We are pleased to have entered into this agreement and incredibly proud to continue our successful relationship with Canpotex,” CP CEO Keith Creel said in a press release. “Canpotex and CP are like-minded organizations, focused on asset utilization and efficiency. This long-standing relationship makes sense for us both. We look forward to the opportunity to continue serving Canpotex and supporting growth.”
CP is the primary rail transporter of Canadian potash — used primarily in fertilizers, but also in small quantities in such products as detergents and ceramics — to Canpotex’s export markets. The Saskatchewan-based company ships about 12 million metric tons of potash overseas to 40 countries.
“This new agreement will extend our long-standing relationship with CP, and will provide the safe and efficient rail service we depend on to reliably reach our customers in overseas markets,” said Gord McKenzie, Canpotex CEO.
