Logistics & Distribution

ICL benefits from the proximity of its facilities to developed economies and emerging markets (such as China, India and Brazil). One of the Company’s major assets is its extensive global logistics and distribution network, with operations in over 30 countries. ICL invests significant resources in developing safe and efficient logistics, with advanced capabilities for monitoring and control, to reduce costs and negative impacts on the environment. ICL works continuously to increase the efficiency of its logistics and distribution network. For more information on ICL’s logistics and transportation infrastructure, please see ICL’s 2022 Annual Report pp. 56, 148, 155, 172, 164 \

ICL benefits from the proximity of its facilities to developed economies as well as to emerging markets.

Distribution Network

Israel

Most of ICL’s products in Israel, whether in solid or liquid state, are transported from the Company’s southern sites by rail to the Ashdod and Haifa ports or by trucks to the Eilat port. The port of Eilat is located in the far south of Israel on the Red Sea coast, approximately 180 kilometers south of ICL’s Rotem site and 200 kilometers south of its Sdom facility. Shipments exiting the Eilat port are usually to Asia, whereas sales to Europe and North and South America, as well as some sales to Asia, are transported from the Ashdod port.

Potash from ICL Dead Sea is transported by a conveyor belt from the Sdom site to a railhead located at Tzefa in Mishor Rotem, and from there the output is transported by rail to the Ashdod port.

Bromine from ICL Dead Sea is transported to ICL’s Neot-Hovav Bromine Compounds plant where it is combined with other ingredients to create new products. Bromine not used by ICL Neot-Hovav is transported and sold to various clients worldwide. ICL holds the largest fleet of Iso-tanks in the world allowing valuable security of supply to our customers.

Solid Sulphur is purchased on a Cost and Freight basis at the Port of Ashdod in Israel and transported to our production site in Rotem by rail.

BPA (Bisphenol A) is imported to Israel by container vessels mostly to Ashdod port and from there to our production site in Neot Hovav by rail.

A majority of Israel truck transports are handled by ICL’s wholly owned subsidiary, ICL Tovala, which operates rigid freight trucks and trailers.

Spain

ICL Iberia transports ore that it excavates from its Cabanasses mine to a production plant by conveyor belt. The final products of potash and salt are transported from the plant to its customers by trucks and trains to the local market, and by railway to Barcelona port and then to overseas markets. A designated railway line is used for the transport of potash from the mines to the Barcelona port.

ICL Iberia owns and operates its own port facilities, which consist of bulk potash and salt storage facilities, freight car and rail truck conveyor unloading facilities and product storage warehouses.

In 2019 ICL Iberia signed a freight rail transport agreement with FGC (Ferrocarrils Generalitat de Catalunya) which increased the capacity of the rail transport. In 2022 up to seven trains left daily with a total payload capacity of 800 tonnes, spread over about 21 freight cars. Increasing the number of freight convoys to the port, which replaces tens of thousands of vehicles per year on the road, has resulted in a significant decrease in CO₂ emissions and has also contributed to improved road safety.

ICL Iberia’s Suria production site has one rail load out system for rail to port transport systems. The train traction engine and part of the bulk freight car rolling stock is operated by the owner and operator, FGC (Ferrocarrils de la Generalitat de Catalunya).

As part of a plan to increase its production capacity, ICL Iberia is upgrading its logistical infrastructure at the Suria Site and at the Cabanasses mine (an entrance ramp into the mine was opened in 2021), at its factories and at the Company’s berth in the Barcelona port, in such a manner that will permit production, transport and export of about 2.3 million tonnes of potash and salt per year.

United Kingdom

ICL’s Boulby mine in the United Kingdom is connected by a network of roads running over 11 kilometers southward from the mine entrance, as well as a network of underground roads extending 17.5 kilometers from the mine entrance in the direction of the North Sea. Approximately 80 kilometers of underground tunnels remain open to support current production. The mine enjoys easy access to national road and train transportation routes.

Pursuant to agreements with the North Yorkshire National Parks Authority, the total transport movements by means of the network of roads from site to site are limited to a maximum of 150 thousand tonnes per year and a maximum of 66 road wagons per day (no road movements are allowed on Sundays or bank holidays).

Eight trains per day transport Polysulphate®, PotashpluS and rock salt to Teesdock. Most of the Polysulphate® output is used as a component in agricultural fertilizers, and volumes are exported by sea from the Teesdock seaport to customers in the UK and overseas.

Brazil

In Brazil, the ICL industrial footprint enables backhaul from grain originally transported from farms and storage facilities to export ports, which return to farmers with ICL products.

ICL America do Sul will have inbound sea imports in 2023 to deliver imported product to our customers in Brazil. These inbound shipments will also involve backhaul of agricultural commodities after delivery of ICL products to our customers. This backhaul of agricultural commodities replaces truck transportation, thereby reducing overall carbon emissions. ICL has also expanded its finished products pipeline by partnering with warehouses in 25 locations across the country.

ICL Aditivose Ingredientes has increased the use of electric trucks for deliveries within a certain radius of São José dos Campos, completely eliminating CO2 emissions for these deliveries, reducing emissions of CO2 by 6.29 tonnes. We also transport products between our industrial facilities using interlink semi-trailer trucks, reducing cargo transport by one third and drastically reducing CO2 emissions from burning diesel oil, making our logistics cleaner.

United States

In the United States, we have started a footprint optimization on our distribution network that will span the next couple of years. We have already consolidated 5 warehouses into 2 at each of the coasts (East and West Coast) and will be doing more in the very near future. All our fork trucks leveraged by our Third-Party suppliers are electric. In addition, the lighting in the warehouses were all upgraded to LED. Every quarter we conduct a primary source location exercise to ensure we are optimizing our logistics and driving less miles. This analysis enables us to optimize our logistics network.

In 2023, we have green supplier initiatives to leverage our suppliers’ sustainability efforts into our scope, using alternative fuel options for trucks, and increasing barge transportation to reduce the footprint of rail cars and trucks.

China

The YPH JV includes the Haikou mine, several factories for production of various types of fertilizers located close to the Haikou mine, and two plants for production of downstream products – one located near the Haikou mine and the fertilizers factory, and the other, situated near the Kunming airport.

Most of the transport of raw materials from the Haikou mine to acid factories is conducted through a pipeline (slurry), and a small portion of the raw rock is transported by truck.

Most of the outputs are sold to the local market in North China and are transported from the fertilizers factory directly to customers by train or marine shipment, mainly from two exit ports (QinZhou port and Fangchengang). A small portion of the output sold is transported to customers in the Yunnan region.