Released on September 22, 2011
Big Sky Rail Now Operating Southwest of Saskatoon
Highways and Infrastructure Minister Jim Reiter officially opened Big Sky Rail today - Saskatchewan's 12th shortline railway.
"The Government of Saskatchewan is proud to play a role in helping establish this latest addition to the provincial rail transportation network," Reiter said. "Shortline railways support economic development in rural Saskatchewan, give shippers another option to move their goods and help reduce truck traffic on our busy highways."
Big Sky Rail will receive a $5.6-million interest-free provincial government loan toward a portion of the purchase of 354 km of track from CN which stretches west to east from near Laporte to near Macrorie and from south to north from Beechy to Delisle. Big Sky Rail took over operations of these two segments of track from CN in early September. Formal purchase agreements and land title transfers will be finalized later this year for these two segments.
"This is all about working together to find the most effective way to move grain from southwestern Saskatchewan to export," CN Western Region Senior Vice-president Mike Cory said. "West Central Road & Rail and Big Sky Rail, with the support of the Government of Saskatchewan, have the local expertise to source the grain that CN will move to markets across North America and around the world."
Big Sky Rail is a partnership that includes Mobil Grain Ltd., which has been hauling grain cars with locomotives on the track since Sept. 6; and West Central Road & Rail, which has five grain-loading facilities along the shortline, and will have an equity position in Big Sky Rail.
"The creation of Big Sky Rail has been a great team effort with CN, Mobil Grain, West Central Road & Rail, and the Government of Saskatchewan," Big Sky Rail President and Mobil Grain President Sheldon Affleck said. "A special thanks goes to CN for encouraging and promoting this shortline railroad. Mobil Grain will market and ship all crops and looks forward to serving farmers in the area."
"We believe this new shortline, under a competitive rate and service structure, will enhance our current operations and open doors to new business opportunities," West Central Road & Rail President and CEO Rob Lobdell said.
The Government of Saskatchewan supports shortline rail through programs that include grants for feasibility studies and infrastructure, along with loans to purchase existing track.
Saskatchewan now has 12 shortlines and more than 2,200 km of provincially-regulated track. These provincial shortlines connect to about 6,400 kilometres of federally-regulated rail lines in Saskatchewan.
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For more information, contact:
Dan Palmer
Highways and Infrastructure
Phone: 306-787-4805
Cell: 306-535-6285
Sheldon Affleck
Big Sky Rail Corp./Mobil Grain
Phone: 877-487-8347 ext 6
Rob Lobdell
West Central Road & Rail
Phone: 306-962-4528 ext 23
Warren Chandler
CN
Phone: 780-245-3732