Nutrien’s decision to build a potash export terminal in the U.S. instead of one closer to home in B.C. isn’t surprising, a University of Saskatchewan professor says.
The Saskatchewan-based potash giant announced last week that it plans to build a new terminal at the Port of Longview, WA to handle expected growth in international demand for its fertilizer products.
Canada's onerous regulations are likely why Nutrien chose to build the terminal in the U.S., said Stuart Smyth, a professor with the U of S Agricultural and Resource Economics department.
“To put a billion-dollar investment in place is going to require rail capacity improvements, and by the sounds of what Nutrient is saying, things are easier to get done in the United States than they are in Canada,” Smyth said last week in an interview with CBC's The 306 guest host Theresa Kliem.
Smyth said the new terminal is part of Nutrien’s plan to expand into India, China and other international markets.
Saskatchewan-based Nutrien is the largest potash fertilizer producer and one of the largest potash miners in the world, producing and shipping about 26 million tonnes of potash, nitrogen and phosphate products annually.
Nutrien expects global demand to grow in the coming years and chose the Port of Longview based on 30 factors used for site selection, the company said in a statement to CBC News.
“The site offers strong rail connectivity, deep-water access and construction feasibility,” it said. “It is intended to complement — not replace — Nutrien’s existing Canadian port capacity.”
Nutrien expects to make its “final investment decision” for the project in 2027, the statement said.
Click here to see more...