Multi-Billion Dollar company looks to invest in Prince Rupert

Canpotex – The story so far

Who are Canpotex? Canpotex is the marketing arm of the three largest potash producers in Canada – Agrium, Mosaic and The Potash Corporation of Saskatchewan.
What is potash? Potash is a naturally occurring mineral that is primarily used in fertilizers.
What is the market? Huge. The worth of these three companies is measured in the Billions. Asia and particularly China is a massive importer of potash.
What has Canpotex got to do with Prince Rupert? The Asian market for potash is already large but is forecast to expand as the Chinese economy continues to grow. Potash is used to grow food so demand is always in existence. Canpotex has plans to expand its West Coast shipping capacity to meet this demand. They have been looking at two possible solutions;expanding an existing site in Vancouver or building a new terminal in Prince Rupert.
Why would Canpotex choose Prince Rupert over Vancouver? Surely expanding the existing site in Vancouver would be cheaper than constructing a new facility in Prince Rupert? According to Canpotex, the costs of expansion in Vancouver are roughly the same as the costs of building a brand new facility in Prince Rupert. Prince Rupert has several advantages over Vancouver:
1. Prince Rupert is 38 hours closer sailing to Asia than any other West Coast port in continental North America.
2. Prince Rupert has a very skilled and very loyal work force. My opinion is that labour can be sourced in Rupert that would stay with Canpotex for a long time. In Vancouver the job market is much larger so workers tend to change jobs more often. I believe that the benefits of worker loyalty will form a significant part of Canpotex’s decision making process.
3. Prince Rupert’s pool of skilled workers is already high, however the recent closure of the Eurocan Pulp Mill in Kitimat has put an additional 500 skilled workers into the local area jobs marketplace.
4. A public meeting was held at the local theatre six months ago where representatives from Canpotex, CN Rail and Prince Rupert Port Authority answered questions about the proposed site in Prince Rupert. The capacity of the theatre is 700. 700 people showed up with an overwhelming show of support for the project. The citizens of Prince Rupert are firmly behind this project and will do all they can to ensure its success.
5. An understanding has been reached between Canpotex, Provincial and Federal Government and First Nations that resolves all land issues enabling Canpotex to proceed with the project in Prince Rupert.
The original timetable discussed at the public meeting gave a date of December 2009 as when an announcement would be made regarding the location of the new facility. This announcement has been delayed, probably due to the volatility of the post-recession world economy.

Conclusion: The introduction of a large operation like Canpotex to Prince Rupert will be a massive boost to our city. Not only will there be an influx of jobs as a direct result of their entry into Prince Rupert but the message will be sent to the world marketplace that Prince Rupert is open for business. The extraordinary success of Prince Rupert Port proves to the world that big business can operate effectively, efficiently and profitably from our wonderful city and as the public meeting showed, the residents of Prince Rupert are ready to welcome Canpotex with open arms. I am hopeful that the extensive list of benefits that Prince Rupert possesses will be sufficient to persuade Canpotex to locate their new facility here.