By Rod Nickel
WINNIPEG, Manitoba, July 11 K&S Potash Canada, a
subsidiary of Germany's K&S AG, said Thursday it has
signed an exclusive long-term deal for Canadian Pacific Railway
Ltd to transport potash from a mine it is building in
The contract is based on volume, said K&S spokesman Michael
Wudonig in an email, declining to release other terms.
The Legacy mine near Moose Jaw, Saskatchewan, is expected to
begin production in 2016, and will be the province's first new
potash facility in about 40 years. It's expected to have annual
capacity of about 2 million tonnes of potash by the end of 2017.
Canadian Pacific competes with larger rival, Canadian
National Railway Co, for the lucrative business of
hauling the crop nutrient from land-locked Saskatchewan to
Pacific Coast ports, as well as to the United States.
CP said it will build a rail spur line to access the mine
CP and CN each have long-term contracts with Canpotex Ltd,
the offshore selling agency for Saskatchewan's three active
potash producers, Potash Corporation of Saskatchewan,
Mosaic Co and Agrium Inc, but CP controls the
majority of potash shipments to the main Port Metro Vancouver,
Canadian Pacific shares rose 0.7 percent in morning trading
in Toronto, while CN stock gained 0.2 percent.
K&S shares in Frankfurt added 0.5 percent.