Agricultural producers on the Canadian Prairies stand to benefit from a collaboration between Arctic Gateway Group (AGG) and Genesis Fertilizers Ltd 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 1128 tpy 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 US 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 US,” 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 utilise 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 organisations. 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.
Genesis Fertilizers seeks to leverage AGG’s port and rail infrastructure to efficiently link its fertilizer products to key markets, reducing lead times and costs. By tapping into new and emerging markets that AGG’s network provides access to, Genesis Fertilizers aims to enhance 3 the growth potential for the plant’s production. The collaboration with AGG will also foster timely delivery and optimised supply chains for fertilizer distribution to both domestic and international markets. This collaboration underscores the benefits of farm producers partnering with northern communities and Indigenous groups to strengthen Canada’s agricultural resilience. By fostering these relationships, producers can contribute to a more stable and sustainable food supply chain, ensuring long-term benefits for all Canadians.