September 15, 2010
Province Supports Studies to Purchase Rural Rail Lines
River Hills Railway and the Lake Line Railway Company will share $48,000 in provincial funding to complete feasibility studies for purchasing and operating short-line railways, Agriculture, Food and Rural Initiatives Minister Stan Struthers announced today.
“It is encouraging to see more communities investigating the opportunities and advantages in purchasing and controlling the short-line railway systems in their areas,” said Struthers. “Purchasing and operating smaller branch lines is an innovative solution in many of Manitoba’s rural areas and we are pleased to partner with these companies to help them with the first step in moving their goal of rail‑line ownership forward.”
The province is providing $25,000 to River Hills Railroad Inc. and $23,000 to the Lake Line Railway Company Ltd. to cover 50 per cent of the cost of each feasibility study.
“A locally owned rail line can provide another option for producers and community businesses along this route to ship products out and bring in other commodities,” said Harold Purkess, president of the River Hills Railroad. “This is a very productive area agriculturally, and we look forward to taking advantage of business opportunities in new and non-traditional markets with trade partners who require rail service. We welcome this provincial support in helping move this study forward.”
River Hills Railroad was incorporated in 2009 with approximately 100 shareholders, many of whom are grain producers. The initial purpose is to research the purchase of 102 kilometres (63.5 miles) of the Canadian Pacific (CP) rail line from Nesbitt to Rathwell. It is expected the rail services will be primarily for grain producers but will also be available to other users.
“Especially in a year like we are having this year, it is important for farmers to look for ways to save money by reducing costs and increasing incomes,” said Randy Penner, chair of Lake Line Railroad. “Preserving and developing our ability to ship producer cars provides a long-term solution to the challenges we as farmers face every year. Retaining rail infrastructure is not a temporary support program when it becomes a permanent asset that can be utilized by all farmers.”
Lake Line Railway Company was established in 2009 by approximately six committee members, also mainly grain producers. If the project is considered viable, a for-profit company will be formed that will be owned by approximately 50 shareholders, most of whom are area farmers. The intent is to research the purchase of 60 km (36 miles) of the CP rail line from Selkirk to Gimli.
Both projects consider a low-volume, short-line railway to be feasible, operating with non-traditional technology and selective maintenance programs, and aggressively pursuing car-loading sites and product loading by producers.
Last year, Boundary Trails Railway Company established a short-line freight railway between Manitou and Morden, a distance of about 40 km.
“As other businesses and communities along the line take advantage of the benefits of local rail freight service, these projects present opportunities for rural economic activity, helping more communities grow and prosper,” said Struthers.
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