Nutrien had been considering ports along the Pacific Northwest for its next export terminal.Todd Korol/Reuters
Canadian fertilizer and agricultural giant Nutrien Ltd. NTR-T has selected Longview, Wash., for its new export terminal worth up to $1-billion, a blow to the Carney government after it promised to attract sizable investments in the mining and resources sector.
The Washington terminal will export the critical mineral potash to fast-growing markets in the Indo-Pacific, including China, India and Japan.
Saskatoon-based Nutrien is the largest global producer of potash, one of three key fertilizers used in major agricultural operations alongside nitrogen and phosphate.
The Washington terminal will have a total capacity of five to six million tonnes and the company expects to finalize the investment decision in 2027 and complete construction by 2031.
The major investment plan – first announced in May – was seen as an early test for Prime Minister Mark Carney’s government, which has promised to streamline regulations and approvals and get Canada back to building big projects, especially when it comes to critical minerals like potash.
Nutrien considers selling phosphate business in bid to boost long-term value
Nutrien didn’t, however, consider nationality or politics when deciding on the location, said chief commercial officer Chris Reynolds in an interview with The Globe and Mail. The decision came down to economics.
“Logistics is a really important component of ensuring that Canadian potash can be competitive on the global stage,” said Mr. Reynolds, who added that global potash demand is expected to grow from 72 million tonnes to 80 million by 2030.
“We need to get ready for that.”
Nutrien ships potash from six mines across Saskatchewan to terminals in North Vancouver, Saint John and Portland, Ore. The largest is Vancouver, with an operational capacity of 10 million tonnes.
For its next terminal, the company assessed options across the Pacific Northwest according to 30 criteria, Mr. Reynolds said. These criteria included rail rates, freight costs and construction costs.
Longview port’s Berth 4 – where Nutrien plans to build its terminal – consistently came out on top, he said.
The site was home to a grain terminal for 60 years until it was shut down in 1989. Redevelopment started in 2014 and concluded in February, 2024.
Nutrien plans new West Coast port infrastructure, eyes sites in U.S. and Canada
Everything required beyond some existing storage will be built and owned by Nutrien, Mr. Reynolds said.
The site has some significant advantages, said Barry Prentice, a professor of transportation and supply chain management at the University of Manitoba.
The port of Vancouver was likely the strongest contender in Canada for Nutrien because it is serviced by both rail lines, Mr. Prentice said. However, this port has limited capacity and the single bridge connecting rail lines to the North Shore is frequently bottlenecked.
Recent labour strikes at the port and the Canadian railways have also been a source of uncertainty for Canada’s shippers, Nutrien included.
The Longview port, in comparison, has sizable capacity and U.S. ports are frequently subsidized by taxpayers, Mr. Prentice said. Since Nutrien already ships potash to Portland, the company has established supply chains.
However, this is not enough of a justification for a Canadian company to invest south of the border, said John Corey, president of the Freight Management Association of Canada.
“It’s a Canadian product. Ninety per cent of the journey happens in Canada. Why then switch it to the U.S.? What’s the rationale there?”
The new case for Nutrien: In a dangerous world, fertilizer shines
Ottawa is trying to create an environment that is friendly to mining and resource companies, Mr. Corey said. It is specifically looking to support these types of projects. But these initiatives will go nowhere unless private companies are willing to spend money in Canada, he said.
“It’s not what’s best for Canada,” he said.
The long-term sustainability of Canadian potash is what is best for Canada, Mr. Reynolds said. Transporting potash is more expensive than mining it, he said, and to stay competitive the company needs to focus on capital costs.
Nutrien’s continued dominance of the sector is uncertain. Australian mining giant BHP is set to open its Saskatchewan-based Jansen mine by mid-2027. When all phases are completed, the mine will produce 8.5 million tonnes of potash every year.
Growth into Asian markets will also require Nutrien to compete with Russian and Belarusian potash exports. The costs of production in these countries is lower than Canada.
“If we’re not competitive from a logistics point of view and if we have a misstep here, that’s not going to be good for Canadian potash... this is helping Canadian potash remain competitive for the long term,” Mr. Reynolds said.
The Globe and Mail reached out to Innovation, Science and Economic Development Canada for comment, but it did not respond by deadline.