K+S Potash Canada and Canadian Pacific Sign Deal on Rail Logistics
SASKATOON, July 11, 2013 /PRNewswire/ - K+S Potash Canada and Canadian Pacific yesterday 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. Canadian Pacific offers an excellent logistics service and we are looking forward to this long-term partnership", 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. "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."
K+S Potash Canada and Canadian Pacific are forming a longstanding 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.
About Canadian Pacific
Canadian Pacific (TSX:CP)(NYSE: CP) is a transcontinental railway in Canada and the United States with direct links to eight major ports, including Vancouver and Montreal, providing North American customers a competitive rail service with access to key markets in every corner of the globe. CP is a low-cost provider that is growing with its customers, offering a suite of freight transportation services, logistics solutions and supply chain expertise. Visit cpr.ca to see the rail advantages of Canadian Pacific.
About the Legacy Project
K+S is putting its more than one hundred years of mining experience and world-class 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 Canadian dollars. 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. The Legacy Project will offer new job opportunities for Saskatchewan workers, and new business opportunities for Saskatchewan companies supplying goods and services to this important economic development. K+S is growing Saskatchewan, while providing the potash that is needed to help feed a growing world population. More information at www.ks-potashcanada.com.
K+S Potash Canada GP is part of the K+S Group, one of the world's leading 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. More information about K+S at www.k-plus-s.com.
SOURCE Canadian Pacific