Canpotex Ltd., which exports potash on behalf of Nutrien Ltd. and The Mosaic Co., confirmed on Nov. 18 that it was looking to re-route its potash exports as a result of massive flooding in British Columbia. “We’re actively pursuing alternative routes to ship our potash overseas, for example, to our terminals in Portland, Oregon, and Saint John, New Brunswick,” a Canpotex spokeswoman told Bloomberg.
Vancouver, a crucial potash and sulfur export port, was cut off from the rest of the country by land after days of storms caused flooding and mudslides that blocked major highways and rail lines. Water and landslides have blocked the tracks of the nation’s two major railways and washed away parts of its main east-west road artery, the Trans-Canada Highway.
British Columbia officially declared a state of emergency on Nov. 17. “This province-wide declaration will help us with the challenges ahead as we recover from the utter devastation that’s been caused by this natural disaster,” said Mike Farnworth, B.C. Minister of Public Safety and Solicitor General. “Getting our rail and roadways back up and in operation is a top priority, and the declaration will enable us to put the resources in place to make that happen.”
The state of emergency is initially in effect for 14 days and may be extended or rescinded as necessary. The state of emergency applies to the whole province and ensures federal, provincial, and local resources can be delivered in a coordinated response to protect the public, which remains the provincial government’s top priority.
The federal government quickly accepted B.C.’s request for assistance. The Canadian military has already arrived, and more personnel and resources are on the way.
“Our focus is on clearing, repairing, and reopening roads to connect the Interior and the North to the Lower Mainland and Vancouver Island, to get our supply chains moving,” said Rob Fleming, Minister of Transportation and Infrastructure. “We are working closely with multiple partners to make this happen. It is a big job, but collectively we are up to the challenge and will get things opened up again just as soon as we possibly can.”
By late Thursday, weather reports were said to be positive with rain no longer in the forecast.
The situation may obviously cause delays in an already tight international potash market. Canpotex had already reported that it was sold out through December. There was some speculation that if Canadian potash cannot readily find a home offshore, more of it could make its way to the U.S.
And for Canada in general, the blocked highways and rail tracks now threaten the movement of goods ahead of the busy winter holiday season.