Canadian Pacific Railway signed a 10-year agreement this week with Canpotex to haul the majority of the major potash exporter’s shipments to a terminal in Vancouver.
Under the agreement, CP, in conjunction with Union Pacific Railway, will also ship potash loads to Portland, Oregon. CP said it has improved its north main line and western corridor to better handle the potash loads originating from 10 Saskatchewan mines.
"By upgrading our network, and through the ongoing implementation of our long train strategy, CP is continuing to strengthen our world class potash supply chain," said CP President and CEO Fred Green. "We are now running potash trains up to 170 railcars in length, further improving service, capacity and efficiency."
The agreement, which takes effect July 1, comes after CP announced a plan to spend up to $1.2 billion on capital improvements over the next several years. The move to ratchet up capital spending is part of the railroad’s strategy to increase profitability, as CP is beset by a proxy war from activist investor William Ackman.