Canadian Pacific Railway Ltd. has lost its monopoly freight contract with potash marketing agency Canpotex Ltd., leaving Canadian National Railway Co in a position to muscle in on its rival’s territory over the next decade.
CN will transport potash from mines in Saskatchewan to a terminal in North Vancouver, but the railway is also considering opening a new potash export site at the Port of Prince Rupert in northwestern British Columbia.
BMO Nesbitt Burns Inc. analyst Fadi Chamoun said CP still managed to secure a valuable, long-term shipping contract with Canpotex and the railway will also move potash to Portland, Ore., in co-operation with Union Pacific Corp. (UNP-N114.410.780.69%) of Omaha.