Canadian Pacific signs potash deal
Canadian Pacific president and CEO Fred Green. (DAVID BLOOM/QMI AGENCY)
Canadian Pacific Railway said it signed a 10-year agreement with Canpotex Ltd to transport a large majority of shipments to the potash marketing consortium's main terminal in Vancouver.
CP said terms and conditions of the deal with Canpotex, which is jointly owned by fertilizer producers Potash Corp , Mosaic Co and Agrium Inc, are confidential.
The agreement improves its unit revenue, CP said in a statement.
CP, Canada's second biggest railway, is fighting a planned proxy battle with activist investor William Ackman, who wants the former chief executive of rival Canadian National Railway to take the reins at CP and more quickly improve its operating ratio.
CP, which will be Canpotex's principal Canadian railway, will also transport all Canpotex's potash shipments to Portland, Oregon, along with Union Pacific Corp.
The agreement between CP and Canpotex starts on July 1.
(Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Sriraj Kalluvila)