National Steel Car to build 700 potash railcars
The $70 million Canpotex deal for the custom-built units will optimize the shipping tonnage.
SASKATOON — Canpotex has selected Hamilton, Ont.’s National Steel Car of to manufacture 700 new railcars to transport Saskatchewan potash to coastal ports, in a deal worth $70 million.
The railcars are custom-designed in Canada to conform to the specific properties of potash, which has allowed Canpotex to optimize the number of tonnes per railcar as well as maximizing the number of railcars per unit train. Canpotex says the cars have increased overall train efficiencies by more than 90%, reduced greenhouse gases and enhanced capacities.
Since 1999, Canpotex has spent more than $500 million with National Steel Ca to build 7,000 railcars.
Canpotex currently ships more than 10 million tonnes of potash, Canada’s largest mineral export, per year, representing $3 billion in annual exports.
Operating since 1972, Canpotex is an offshore potash marketing and export company owned by the three Saskatchewan potash-producing companies: Agrium Inc.; Mosaic Canada Crop Nutrition, LP, a subsidiary of The Mosaic Company; and Potash Corporation of Saskatchewan Inc.
National Steel Car, based in Hamilton, Ont., is a manufacturer of railroad freight and tank cars.