BHP Canada Inc. has signed four-year agreements with Canadian National Railway Co. (CN) and Canadian Pacific Kansas City Ltd. (CPKC) to transport potash from its new Jansen mine in central Saskatchewan to the west coast. The deals cover rail services for stage one of the Jansen project, which is expected to begin production in mid-2027 and reach an annual capacity of 4.15 million tonnes.
Strategic Partnerships for Potash Export
Under the agreements, the mined fertilizer will be shipped to Westshore Terminals in Vancouver using BHP-owned railcars. From there, it will be loaded onto ocean vessels for international markets. Karina Gistelinck, BHP's asset president of potash, stated in a press release: "These partnerships with CN and CPKC represent the beginning of long-term relationships."
Addressing Congestion Challenges
Landlocked Saskatchewan primarily ships potash westbound through Vancouver, a known congestion point. Competitor Nutrien Ltd. invested $1 billion to divert volumes south via an export terminal in Washington, D.C. Federal Minister of Energy and Natural Resources Tim Hodgson noted that the government is working to alleviate rail and port slowdowns by opening new access points, such as Manitoba's Port of Churchill on Hudson Bay. "It's a focused effort on de-bottlenecking the key pinch points," he said on Friday.
Future Expansion Plans
BHP, the Canadian subsidiary of the Australian mining giant, aims to double production in the coming years, though a revised timeline for stage two has not yet been provided. Potash is the fourth most railed commodity in Canada, with 25 million tonnes transported in 2024.
