Saskatchewan potash export agency Canpotex Limited plans new port facilities in Prince Rupert and North Vancouver, British Columbia.
Two new port facilities will be built in B.C. to help ship Saskatchewan potash around the world.
A Saskatchewan potash export agency is planning to almost double its West Coast shipping capacity with new port facilities in Prince Rupert and North Vancouver.
Canpotex Limited plans to add about 11 million tonnes of potash shipping capacity to its current 12 million tonnes of annual capacity by the end of 2012.
The projects include a new greenfield terminal on Ridley Island near Prince Rupert, B.C. and a brownfield terminal expansion adjacent to Neptune Bulk Terminals (Canada) Ltd. in North Vancouver, B.C.
“These projects are essential and strategic steps in preparing for long-term growth in global potash demand,” said Steven Dechka, president and CEO of Canpotex.
“With Canpotex shareholders working to significantly increase production over the next several years, we have a responsibility to build on our long-term ability to deliver this essential nutrient to offshore markets.
“In addition to increasing shipping capacity, the terminals will provide access to the fastest shipping routes to certain key offshore markets such as China.”
The combined cost of these projects is expected to be in excess of $500 million.
The Vancouver Fraser Port Authority, also known as Port Metro Vancouver, is on board with the announcement.
“We are encouraged that this important Canadian commodity will continue to be shipped through Canadian ports and at substantially increased volumes,” said Captain Gordon Houston, president and CEO of Port Metro Vancouver.
Both projects are subject to the finalization of acceptable agreements with the respective port authorities .
The projected increase in potash export capacity complements the North Shore Trade Corridor Initiative, a port program to develop road and rail enhancements in the Lower Mainland.
Partners in this initiative include Port Metro Vancouver, CN Rail and North Shore terminal operators, along with Transport Canada, the B.C. Ministry of Transportation and TransLink.
Port Metro Vancouver is Canada’s largest and most diversified port, annually trading more than $53 billion in goods with more than 100 trading economies. Port activities generate 69,000 jobs across Canada with $4 billion in gross domestic product and $8.9 billion in economic output.
Canpotex is the offshore marketing company owned by the three Saskatchewan potash producing companies: Agrium Inc., Mosaic Canada Crop Nutrition, LP, a subsidiary of The Mosaic Company, and Potash Corporation of Saskatchewan Inc.