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MINISTER OPENS SASKATCHEWAN’S 10TH SHORTLINE RAILWAY

Released on October 15, 2009

Last Mountain Railway operating between Regina and Davidson

Highways and Infrastructure Minister Jim Reiter officially opened Saskatchewan's 10th Shortline Railway today - Last Mountain Railway.

"It's great seeing this important component of our provincial transportation system reach this landmark number and the Government of Saskatchewan is proud to play a role in helping establish Last Mountain Railway," Reiter said. "Shortlines help link our export-based economy to worldwide markets and support economic development in rural areas."

Last Mountain Railway received a $1.6 million interest-free provincial government loan toward the purchase price of $5.1 million for 108 km of track between Davidson and Lumsden from CN. The new shortline will lease from CN the remaining 27 km from Lumsden to Regina with a future option to buy.

"Last Mountain Railway provided a strong case for shortline operation north of Regina," CN Vice-President of Network Strategies Francois Hebert said. "We look forward to a long-term relationship with this new shortline partner."

Last Mountain Railway, which began operating in mid summer, also received an $8,000 provincial government study grant to investigate the viability of the shortline before buying it, after it had been inactive for several years. The province supports shortline rail through a trio of programs that includes grants for feasibility studies and infrastructure, along with loans to purchase existing track.

"We are very excited about the future potential of this railway," Last Mountain Railway's Director Sheldon Affleck said. "We also look forward to working with CN and local producers to expand and diversify our rail traffic and services."

Last Mountain Railway is a partnership comprised of Mobil Grain Ltd.; the Towns of Davidson and Craik; the Villages of Chamberlain and Kenaston; the Rural Municipalities of Sherwood, Arm River, Willner, McCraney and Dundurn; along with several private investors.

Saskatchewan has 10 operational shortlines covering about 1,700 km of provincially-regulated track. These provincial shortlines connect to about 7,100 kilometres of federally-regulated rail lines in Saskatchewan.

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For more information, contact:

Dan Palmer
Highways and Infrastructure
Regina
Cell: 306-536-0049

Sheldon Affleck
Last Mountain Railway
Phone: 306-533-0882

Kevin Franchuk
CN
Phone: 780-643-7731
Cell: 780-288-8854

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