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Canadian Pacific (CP) Boosts Ties With Canpotex Via New Deal

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To bolster its relationship with the potash exporting and marketing company Canpotex Limited, Canadian Pacific Railway Limited (CP - Free Report) inked a seven-year deal with the former. The new long-term pact runs through 2028.  

We note that Canpotex and Canadian Pacific are no strangers as the two are already bound by a 10-year contract, which will expire next year and get replaced by the above-mentioned seven-year deal.

Being a primary rail transportation provider, Canadian Pacific provides support in delivering Canadian potash to the overseas export markets of Canpotex. By facilitating delivery from mine to port terminals, CP allows Canpotex's supply chain to be optimized in an efficient and safe manner.

The new seven-year agreement will allow Canpotex to continue utilizing Canadian Pacific’s highly efficient service options and network capacity, thereby aiding growth. Expressing happiness at the new deal with CP, Gord McKenzie, president and CEO, Canpotex stated: “This new agreement will extend our long-standing relationship with CP, and will provide the safe and efficient rail service we depend on reliably to reach our customers in overseas markets.”

Zacks Rank & Key Picks

Canadian Pacific currently carries a Zacks Rank #3 (Hold).

Below, we present some better-ranked stocks in the Zacks Transportation  industry:

ArcBest Corporation (ARCB - Free Report) currently sports a Zacks Rank #1 (Strong Buy). ARCB’s earnings trumped the Zacks Consensus Estimate in each of the preceding four quarters, the average being 27.4%.

Shares of ArcBest have surged more than 100% so far this year. Improving freight conditions in the United States bode well for ARCB. Solid customer demand and higher market rates are supporting growth at ARCB. You can see the complete list of today’s Zacks #1 Rank stocks here.

C.H. Robinson Worldwide (CHRW - Free Report) sports a Zacks Rank of 1, presently. The long-term expected earnings per share (three to five years) growth rate for CHRW is pegged at 9%. CHRW benefits from higher pricing and volumes across most of its service lines.

Total revenues at C.H. Robinson jumped 42.4% year over year in the first nine months of 2021, with higher revenues across all the segments. CHRW’s measures to reward its shareholders are encouraging. Driven by the tailwinds, the stock has moved up 8.2% in the past year.


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C.H. Robinson Worldwide, Inc. (CHRW) - free report >>

Canadian Pacific Kansas City Limited (CP) - free report >>

ArcBest Corporation (ARCB) - free report >>

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