Winnipeg – Agricultural producers on the Canadian Prairies stand to benefit from a collaboration between Arctic Gateway Group (AGG) and Genesis Fertilizers Limited Partnership (Genesis Fertilizers), which is focussed on cutting fertilizer import and export costs, improving supply chain reliability, and expanding market reach.
The parties have entered into a letter of intent to establish a framework for cooperation between AGG and Genesis Fertilizers to enhance business opportunities and facilitate the development of efficient logistical and supply chain solutions. The parties seek mutually beneficial new import and export shipments in 2025 and beyond.
Genesis Fertilizers and AGG will cooperate to source and import phosphate and ammonium sulphate supply from international vendors as feedstock for the products to be produced at Genesis Fertilizers’ proposed 1,128 MTPA nitrogen fertilizers facility to be built at Belle Plaine, Saskatchewan, and the parties seek to distribute such supply domestically through facilities at the Port of Churchill and the planned SuperCenter distribution network of Genesis Fertilizers. Currently, this feedstock is brought into Canada from the United States by other importers.
“This new collaboration with AGG is a significant step forward for Genesis Fertilizers, and is made possible by the substantial work AGG has done to strengthen the efficiency and reliability of the Hudson Bay Railway and grow the capabilities of the Port of Churchill,” said Jason Mann, President and Chief Executive Officer, Genesis Fertilizers.
“With AGG’s reliable port and rail infrastructure, along with the shorter route to world markets offered by Canada’s Arctic Trade Corridor, we can reduce transportation costs and improve supply chains for both domestic and international markets. This initiative is further supported by Genesis Fertilizers’ extensive network of global partners, including PwC, MNP, DL&EC, Stantec, PCL, CARBONCO, thyssenkrupp, Stamicarbon and Whitecap Resources who provide expertise in finance, engineering, and infrastructure to enhance operational efficiency and strategic growth.”
“This collaboration with Genesis Fertilizers speaks to the value AGG can provide to Western Canada’s agricultural and resource industries, which we need more than ever given trade uncertainty with the United States,” said Chris Avery, CEO of AGG. “Working together we can diversify western Canadian trade routes via the shorter route AGG provides to world markets, and continue to step up and serve Canadian businesses and families with northern import and export optionality.”
In addition, AGG aims to utilize Genesis Fertilizers’ transportation and storage needs to expand its logistical capabilities and grow their operations. By collaborating on best practices for storage, shipping, distribution, and supply chain management, AGG aims to create operational efficiencies that will benefit both organizations. This collaboration is expected to increase shipping and rail traffic, optimize the use of AGG’s rebuilt infrastructure, and establish a strong new relationship with a key player in the Canadian fertilizer industry. Both companies are also committed to increasing jobs and training for Indigenous and northern communities through this increased economic activity.
(Photo shows Genesis Fertilizers CEO, Jason Mann, and AGG CEO, Chris Avery, shake hands following signing of an agreement in Winnipeg on March 7.)