Canpotex
Encyclopedia
Canpotex, short for Canadian Potash Exporters , is a Canadian
potash
exporting and marketing firm, incorporated in 1970 and operating since 1972. Based in Saskatchewan
, Canpotex manages the entire Saskatchewan potash exporting industry (excluding Canadian and US sales), including transportation and delivery. It has been criticized as a "cartel".
Canpotex is the world's largest exporter of potash
, selling over nine million tonnes of potash in 2008, representing about one-third of global capacity. The global potash market is considered a duopoly
between Canpotex and Belarussian Potash Co, a similar consortium which exports Belarussian and Russian potash; the two collectively control 70% of global potash exports.
In August 2010, Australian mining giant BHP Billiton
announced intentions to acquire PotashCorp, though its bid was blocked by the Canadian government in November 2010 and subsequently withdrawn. BHP publicly intended to exit the Canpotex partnership as it prefers to market its minerals itself. As over half of Canpotex's sales volumes ware produced by PotashCorp, both Agrium and Mosaic issued concerns. The Saskatchewan government also issued concerns, citing that the breakup of Canpotex would likely result in lower tax revenues for the government.
cars for inland transportation of potash from landlocked Saskatchewan to ports, and operates solely on Canadian Pacific Railway
lines. In 2011, Canpotex started on the construction of a new $55 million rail car maintenance yard near the town of Lanigan, Saskatchewan
used to perform maintenance and manage the inventory of railcars.
The majority of its potash is shipped overseas to Asia
n, Latin America
n, and Oceanic
markets through Neptune Terminals, partly owned by Canpotex, in North Vancouver, British Columbia
. Since 1997, Canpotex has additionally exported through Portland Terminals (owned by Canpotex and operated by Kinder Morgan
) in Portland
, Oregon
. Canpotex additionally ships smaller quantities of potash through the St. Lawrence Seaway via Thunder Bay
, Ontario
, and has access to ports on the Atlantic Coast
and Gulf of Mexico
.
, built as a joint venture with U-Sea received its first load of 58,000 metric tons of potash in the Port of Vancouver
in November 2010. The U-Sea Saskatchewan
was built by Imabari Shipbuilding of Japan and is capable of carrying 60,000 metric tons. Other ships include the U-Sea Colonsay
.
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
potash
Potash
Potash is the common name for various mined and manufactured salts that contain potassium in water-soluble form. In some rare cases, potash can be formed with traces of organic materials such as plant remains, and this was the major historical source for it before the industrial era...
exporting and marketing firm, incorporated in 1970 and operating since 1972. Based in Saskatchewan
Saskatchewan
Saskatchewan is a prairie province in Canada, which has an area of . Saskatchewan is bordered on the west by Alberta, on the north by the Northwest Territories, on the east by Manitoba, and on the south by the U.S. states of Montana and North Dakota....
, Canpotex manages the entire Saskatchewan potash exporting industry (excluding Canadian and US sales), including transportation and delivery. It has been criticized as a "cartel".
Canpotex is the world's largest exporter of potash
Potash
Potash is the common name for various mined and manufactured salts that contain potassium in water-soluble form. In some rare cases, potash can be formed with traces of organic materials such as plant remains, and this was the major historical source for it before the industrial era...
, selling over nine million tonnes of potash in 2008, representing about one-third of global capacity. The global potash market is considered a duopoly
Duopoly
A true duopoly is a specific type of oligopoly where only two producers exist in one market. In reality, this definition is generally used where only two firms have dominant control over a market...
between Canpotex and Belarussian Potash Co, a similar consortium which exports Belarussian and Russian potash; the two collectively control 70% of global potash exports.
Member producers
Canpotex is wholly owned by its three member producers:- Potash Corporation of SaskatchewanPotash Corporation of SaskatchewanThe Potash Corporation of Saskatchewan Inc. , also referred to as PotashCorp, is a Canadian corporation based in Saskatoon, Saskatchewan. The company is the world's largest potash producer and the third largest producers of nitrogen and phosphate, three primary crop nutrients used to produce...
(PotashCorp) — 54% of potash exported - The Mosaic CompanyThe Mosaic CompanyThe Mosaic Company is a Fortune 500 company based in Plymouth, Minnesota. Mosaic offers two key crop nutrients—phosphate and potash—plus specialty products K-Mag®, MicroEssentials® and Pegasus™...
— 37% - AgriumAgriumAgrium Inc. is a major retail supplier of agricultural products and services in North and South America, a leading global wholesale producer and marketer of all three major agricultural nutrients and the premier supplier of specialty fertilizers in North America through its Advanced Technologies...
— 9%
In August 2010, Australian mining giant BHP Billiton
BHP Billiton
BHP Billiton is a global mining, oil and gas company headquartered in Melbourne, Australia and with a major management office in London, United Kingdom...
announced intentions to acquire PotashCorp, though its bid was blocked by the Canadian government in November 2010 and subsequently withdrawn. BHP publicly intended to exit the Canpotex partnership as it prefers to market its minerals itself. As over half of Canpotex's sales volumes ware produced by PotashCorp, both Agrium and Mosaic issued concerns. The Saskatchewan government also issued concerns, citing that the breakup of Canpotex would likely result in lower tax revenues for the government.
Facilities
Canpotex operates over 5,500 specialised covered hopperCovered hopper
A Covered Hopper is a railroad freight car. They are designed for carrying dry bulk loads, varying from grain to products such as sand and clay. The cover protects the loads from the weather - dried cement would be very hard to unload if mixed with water in transit, while grain would be liable to...
cars for inland transportation of potash from landlocked Saskatchewan to ports, and operates solely on Canadian Pacific Railway
Canadian Pacific Railway
The Canadian Pacific Railway , formerly also known as CP Rail between 1968 and 1996, is a historic Canadian Class I railway founded in 1881 and now operated by Canadian Pacific Railway Limited, which began operations as legal owner in a corporate restructuring in 2001...
lines. In 2011, Canpotex started on the construction of a new $55 million rail car maintenance yard near the town of Lanigan, Saskatchewan
Lanigan, Saskatchewan
Lanigan is a town in south-central Saskatchewan, Canada, at the intersection of TransCanada Yellowhead Highway 16 and Highway 20, approximately 117 km east of Saskatoon and 170 km north of Regina.-Famous people:...
used to perform maintenance and manage the inventory of railcars.
The majority of its potash is shipped overseas to Asia
Asia
Asia is the world's largest and most populous continent, located primarily in the eastern and northern hemispheres. It covers 8.7% of the Earth's total surface area and with approximately 3.879 billion people, it hosts 60% of the world's current human population...
n, Latin America
Latin America
Latin America is a region of the Americas where Romance languages – particularly Spanish and Portuguese, and variably French – are primarily spoken. Latin America has an area of approximately 21,069,500 km² , almost 3.9% of the Earth's surface or 14.1% of its land surface area...
n, and Oceanic
Oceania
Oceania is a region centered on the islands of the tropical Pacific Ocean. Conceptions of what constitutes Oceania range from the coral atolls and volcanic islands of the South Pacific to the entire insular region between Asia and the Americas, including Australasia and the Malay Archipelago...
markets through Neptune Terminals, partly owned by Canpotex, in North Vancouver, British Columbia
British Columbia
British Columbia is the westernmost of Canada's provinces and is known for its natural beauty, as reflected in its Latin motto, Splendor sine occasu . Its name was chosen by Queen Victoria in 1858...
. Since 1997, Canpotex has additionally exported through Portland Terminals (owned by Canpotex and operated by Kinder Morgan
Kinder Morgan
Kinder Morgan, Inc. is an American energy company. It is also, through a subsidiary, the general partner of and owner of many of the interests in Kinder Morgan Energy Partners, a publicly traded pipeline and terminal limited partnership....
) in Portland
Portland, Oregon
Portland is a city located in the Pacific Northwest, near the confluence of the Willamette and Columbia rivers in the U.S. state of Oregon. As of the 2010 Census, it had a population of 583,776, making it the 29th most populous city in the United States...
, Oregon
Oregon
Oregon is a state in the Pacific Northwest region of the United States. It is located on the Pacific coast, with Washington to the north, California to the south, Nevada on the southeast and Idaho to the east. The Columbia and Snake rivers delineate much of Oregon's northern and eastern...
. Canpotex additionally ships smaller quantities of potash through the St. Lawrence Seaway via Thunder Bay
Thunder Bay
-In Canada:Thunder Bay is the name of three places in the province of Ontario, Canada along Lake Superior:*Thunder Bay District, Ontario, a district in Northwestern Ontario*Thunder Bay, a city in Thunder Bay District*Thunder Bay, Unorganized, Ontario...
, Ontario
Ontario
Ontario is a province of Canada, located in east-central Canada. It is Canada's most populous province and second largest in total area. It is home to the nation's most populous city, Toronto, and the nation's capital, Ottawa....
, and has access to ports on the Atlantic Coast
Atlantic Coast
The Atlantic Coast is any coast fronting the Atlantic Ocean. The term differentiates the coasts of countries or continents with coastlines on more than one body of water, such as North America, South America, Africa and Europe.-See also:*Indian Ocean...
and Gulf of Mexico
Gulf of Mexico
The Gulf of Mexico is a partially landlocked ocean basin largely surrounded by the North American continent and the island of Cuba. It is bounded on the northeast, north and northwest by the Gulf Coast of the United States, on the southwest and south by Mexico, and on the southeast by Cuba. In...
.
Ships
Canpotex has committed $900 Million to the manufacture of 15 cargo vessels. The first of these vessels, the U-Sea SaskatchewanU-Sea Saskatchewan
The U-Sea Saskatchewan is a bulk cargo carrier owned by Canpotex of Canada, primarily used for the transport of potash between Canada and destinations in Asia. The ship is named after the Province of Saskatchewan, where much of the potash it caries originates. This ship is the first of nine...
, built as a joint venture with U-Sea received its first load of 58,000 metric tons of potash in the Port of Vancouver
Port of Vancouver
The Port of Vancouver was the name of the largest port in Canada, the largest in the Pacific Northwest, and the largest port on the West Coast of North America by metric tons of total cargo, with 76.5 million metric tons...
in November 2010. The U-Sea Saskatchewan
U-Sea Saskatchewan
The U-Sea Saskatchewan is a bulk cargo carrier owned by Canpotex of Canada, primarily used for the transport of potash between Canada and destinations in Asia. The ship is named after the Province of Saskatchewan, where much of the potash it caries originates. This ship is the first of nine...
was built by Imabari Shipbuilding of Japan and is capable of carrying 60,000 metric tons. Other ships include the U-Sea Colonsay
U-Sea Colonsay
The U-Sea Colonsay is a bulk cargo carrier owned by Canpotex of Canada, primarily used for the transport of potash between Canada and destinations in Asia. The ship made it's first maiden voyage on October of 2011 from Japan to Vancouver; it is named after the Colonsay Potash Mine in Province of...
.