Union Pacific is growing alongside customer Canpotex to help meet overseas demand for potash, a valuable mineral containing potassium typically used as agricultural fertilizer.
Subscribe to Inside Track
Since Canpotex completed a $150 million facility expansion at the Port of Portland’s Terminal 5 in 2018, it has typically received more than a dozen unit trains per month, each comprising 188 carloads of potash. In the second quarter of this year, Canpotex’s increased shipments to Portland led to record potash levels for Union Pacific.
Sourcing potash produced by its shareholders, Mosaic and Nutrien in Saskatchewan, Canada, Canpotex annually supplies more than 13 million tons of potash to 40 countries overseas, including Brazil, China, India, Indonesia and Malaysia. Approximately 20% of those exports go through the Port of Portland.
“I’m proud of the collaboration and communication across Union Pacific and with Canpotex to not only meet, but exceed expectations with this volume increase, ensuring all resources were lined up to handle the additional business,” said Union Pacific’s Beth Steele, general director, Marketing and Sales. “We’re looking forward to more opportunities with Canpotex as we grow together through operational excellence.”
It also involved coordination with the Canadian Pacific Kansas City (CPKC), as Union Pacific interchanges with CPKC at Eastport, Idaho, and transports the unit trains to Portland via Hinkle, Oregon. Union Pacific’s ongoing capital investments to expand the Eastport route’s capacity are helping accommodate this growth.
“Reliability is critical for potash shipments. Our customers count on Canpotex to deliver the high-quality potash they need to improve crops and grow food,” said Canpotex’s Vinesh Kohli, senior vice president, Operations. “Partners like Union Pacific have an important role in Canpotex’s supply chain that makes global food security possible.”