CP's larger rival, Canadian National Railway, also announced a 10-year hauling agreement with Canpotex, which is the marketing arm of Potash Corp, Mosaic Co and Agrium Inc, all of which mine potash, a fertilizer ingredient, in Western Canada.
Neither railroad gave details of the agreements, which take effect on July 1.
BMO Capital Markets analyst Fadi Chamoun said he estimated that CP had held on to around 80 percent of Canpotex's volumes from the previous contract, with CN getting the balance.
"I had thought CN would get a little bit more than that... It is a modest positive for CP," Chamoun said.
Under the agreement, CP will also transport Canpotex's potash shipments to Portland, Oregon, along with Union Pacific Corp.
The agreement comes as CP, Canada's second-biggest railway, is facing a proxy battle with activist investor William Ackman, who wants a former chief executive of CN to take the reins at CP and improve the efficiency of its operations more quickly than the company now plans.
CN will haul the potash on its southern British Columbia line. CN and Canpotex will also continue to study the feasibility of building a new potash export terminal at the port of Prince Rupert, British Columbia, north of Vancouver. (Reuters)
