A thousand acres of Potash…

Saskatchewan’s rising star in the potash world is proving to be a bonus for Prince Rupert, as the port begins the process of helping a Saskatchewan company develop its plans for a major increase in shipments of the valuable product.

With plans in development to double their annual production of potash shipments to world markets, Prince Rupert became a front of the business section story this week.

The news that Canpotex is developing plans for a potash terminal on a one thousand acre site on Ridley Island caught the attention of the Daily News of Thursday, as they provided a front page story on the prospect of Prince Rupert’s next big project…

THOUSAND-ACRE RIDLEY POTASH FACILITY WELCOMED
Fertilizer component to be shipped through facility from its source in Saskatchewan
BY LEANNE RITCHIE
The Daily News
Thursday, June 26, 2008
Pages one and two

Record prices for potash are behind plans for a new potash terminal on Ridley Island.
Yesterday, Canpotex, the Saskatchewan potash export agency, announced plans to double its West Coast shipping capacity to 23 million tones a year by building a new terminal on Ridley Island and expanding capacity beside Neptune Bulk Terminals in North Vancouver.

"These projects are essential and strategic steps in preparing for long-term growth in global potash demand," said Steven Dechka, president of Canpotex.

Canpotex is owned by the three Saskatchewan potash producers - Agrium Inc., Potash Corp. of Saskatchewan Inc. and the Mosaic Co.

"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," Dechka said.

"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 price tag for both projects is in excess of $500-million.

Potash is a combination of Nitrogen, phosphate, and potassium. Known also as N-P-K, the components are blended together in various quantities, and used as fertilizer.

Canada is the world leader in potash production, producing 18 million tons, with more than 22 million tons of capacity, versus world production of 50 million tons. Ninety-five per cent of Canadian potash is mined in Saskatchewan; where CN has single-line access to all potash mines.
While the construction of the terminal on Ridley Island is still subject to an agreement between the Prince Rupert Port Authority (PRPA) and Canpotex, Don Krusel, president of the PRPA said the port is pleased Canpotex has chosen Prince Rupert as its new site.

"We've worked very hard to support Canpotex in their site feasibility analysis and comparing alternate development locations," said Krusel.

"We are confident that the Prince Rupert gateway will provide Canpotex and the Canadian Potash Industry with significant advantages in growing their export business," said Krusel.
The terminal will include 1,000-acres of land on Ridley Island with deepwater access managed by the Prince Rupert Port Authority.

The site currently has rail access that services Prince Rupert Grain and Ridley Terminals Inc.
The PRPA is proposing to extend rail access and other infrastructure to the new terminal.
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 commodity, saw its first-quarter profit leap to $566-million (U.S.), up from $198-million a year ago.