Potash Rail Transportation: Domestic & Export ? Introduction

The Santa Fe Railway serves the dominant U. S. potash producing region which is centered at Carlsbad, NM. This rail system extends over 12,000 miles stretching from Chicago to the Texas Gulf Coast to the state of California. (see Figure 1) Since Carlsbad mining operations began in the 1930?s, Santa Fe has been transporting potash to many of the important grain producing areas of the country and to the major ports in Texas and California. Santa Fe has maintained a close relationship with the potash companies and has adopted a marketing philosophy of attempting to maximize opportunities for the Carlsbad producers where it is mutually beneficial. Potash has been an important commodity for the Santa Fe. It accounted for 8% of our revenue in 1965 and 3% in 1984. In the 1950?s, Carlsbad became the second largest revenue producing point on the Santa Fe. But this prominent position has diminished as ore reserves became depleted, imports flooded the U. S. market, and truck transportation developed.