CP Rail to ship drilling sand for U.S. Silica

Canadian Pacific Railway Ltd (CP-T), Canada's second--biggest railroad, said it signed a multi-year deal with U.S. Silica Holdings Inc (SLCA-N) to transport drilling sand from the U.S. company's mine in Sparta, Wisconsin.

CP said it will become the exclusive rail service provider at the Sparta mine.

U.S. Silica, which went public in April, is the No. 2 U.S. commercial silica maker. Its largest end market is for proppants, used by the oil and gas industry in an exploration method called hydraulic fracturing.

The company is building a new frac sand facility located on the CP's rail line in Wisconsin that will produce Northern White sand for use in shale basins across the United States and Canada.