Canpotex Limited, a major shipper of potash materials has announced plans to build a 500 million dollar terminal on Ridley Island as well as to expand its existing facilities in Vancouver.
It was an announcement that our Podunkian portal first suggested in May could be on the way to Prince Rupert .
The announcement today advises that with the new terminal in place the increased capacity for shipping is expected to almost double the company’s current output, that by adding 11 million tonnes of annual potash to their existing pace of 12 million tonnes a year.
The project is awaiting a final acceptance agreement from the Port of Prince Rupert, at which point construction will begin on the terminal facilities at Ridley. The need for increased capacity comes as the worldwide demand for potash rises steadily, with China becoming a major destination for the fertilizer products that are produced.
Prince Rupert’s location and distance to China makes it a sensible location for an export facility to be set up. No information as to how many jobs would be created have been released as of yet, nor has there been a timetable for construction provided at the moment either.
The Globe and Mail featured the story on its website today outlining the details of the Canpotex plans.
The announcement today advises that with the new terminal in place the increased capacity for shipping is expected to almost double the company’s current output, that by adding 11 million tonnes of annual potash to their existing pace of 12 million tonnes a year.
The project is awaiting a final acceptance agreement from the Port of Prince Rupert, at which point construction will begin on the terminal facilities at Ridley. The need for increased capacity comes as the worldwide demand for potash rises steadily, with China becoming a major destination for the fertilizer products that are produced.
Prince Rupert’s location and distance to China makes it a sensible location for an export facility to be set up. No information as to how many jobs would be created have been released as of yet, nor has there been a timetable for construction provided at the moment either.
The Globe and Mail featured the story on its website today outlining the details of the Canpotex plans.
The CBC also had details on the developments, as did the Vancouver Sun, while the Northern View was the first with the local point of view on the story.
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Update: Opinion 250 has posted a story which includes local quotes and an artists rendition of the project.
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Update 2: The Windsor Star had some background on Canpotex's plans, the Prince George Citizen also provided some details on the plans while the National Post approached the story on how it impacts on the railroads.
Canpotex spending $500-million to expand port
JOHN PARTRIDGE
Globe and Mail Update
June 25, 2008 at 7:59 AM EDT
Canpotex spending $500-million to expand port
JOHN PARTRIDGE
Globe and Mail Update
June 25, 2008 at 7:59 AM EDT
Canpotex Ltd. has unveiled plans to almost double its potash shipping capacity on the west coast in the next three years.
The company expects to spend more than $500-million on a new terminal at Ridley Island, near Prince Rupert, B.C., and on expanding an existing facility next to Neptune Bulk Terminals (Canada) Ltd. in North Vancouver. It is seeking to keep pace with planned production increases by the three Saskatchewan producers that own it.
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The expansion move is spurred by unprecedented global demand for fertilizer as farmers seek to boost crop yields to capture record prices.
Together, the projects will add about 11 million tonnes of annual potash shipping capacity to its existing 12 million tonnes, said the Saskatoon company. It handles offshore marketing for owners Potash Corp., Agrium Inc. and Mosaic Canada Crop Nutrition LP.
“These projects are essential and strategic steps in preparing for long-term growth in global potash demand,” Canpotex president and chief executive officer Steven Dechka said in a news release. “In addition to increasing shipping capacity, the terminals will provide access to the fastest shipping routes to certain key offshore markets such as China.”
Both terminal projects are subject to the finalization of acceptable agreements with port authorities in Prince Rupert and North Vancouver and other stakeholders, the company said.
Demand for potash and other fertilizers has been soaring around the world, and prices for both these nutrients and the shares of their producers have gone along for the ride.
In April, for example, China agreed to pay $576 (U.S.) a tonne for potash (plus shipping), up a startling $400 a tonne from last year's contract, while Potash Corp., the world's biggest producer of the stuff, saw its first-quarter profit leap to $566-million (U.S.), up from $198-million a year earlier.
The giant company's shares, meanwhile, have nearly tripled in the past year, closing at $229.99 (Canadian) on the Toronto Stock Exchange Tuesday.
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