K+S, CP Sign Rail Transport Deal for Exports

K +S Potash Canada and Canadian Pacific (TSX:CP, NYSE:CP) announced that they have signed a long-term contract for the transportation of potash products from K+S’ Legacy Site to a Western Canadian port of export for overseas destinations.

As quoted in the press release:

K+S Potash Canada and Canadian Pacific are forming a longstanding partnership to ensure that the transport of product from the Legacy site to clients is both secure and competitive. Production from the mine is planned for the summer of 2016. In order to accommodate the transportation needs of the Legacy site, Canadian Pacific will be building an exclusive rail spur to provide access to  K+S Potash Canada’s Legacy Site. Canadian Pacific also offers competitive opportunities in existing and identified markets for K+S Potash Canada.

K+S’ President and CEO, Dr. Ulrich Lamp, said:

We are glad to have found Canadian Pacific as the perfect partner and strategic fit for our transportation needs inCanada. Canadian Pacific offers an excellent logistics service and we are looking forward to this long-term partnership.

To view the whole press release, click here.