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RENAUD RESPONDS TO CP RAIL ABANDONMENT PLAN

Released on April 2, 1997

Highways and Transportation Minister Andy Renaud expressed concern
about the announcement yesterday by CP Rail of its 3-year plan for
branchline abandonment.

"I have serious concerns about the impact of rail abandonment on
Saskatchewan producers, rural communities and provincial and municipal
roads," Renaud said.

CP identified 725 kilometres of branchlines in Saskatchewan to be
abandoned over the next three years and 193 kilometres to be
transferred to shortline operations. This represents approximately 20
per cent of CP branchlines in the province. Yesterday's announcement
is in addition to the light steel or low volume lines which were
announced in August 1996.

"CP's announcement is another example of the consequences of flawed
federal legislation," Renaud said. "Under the new Canada
Transportation Act, communities and producers affected by the railways
abandonment plans have a very short window to assess the viability of
maintaining their lines as shortline railways. With this legislation,
they will have a very short period of time, perhaps as little as 120
days from the date of the announcement, to determine if it is feasible
to maintain rail service in their area.

"I hope that CP will consider allowing sufficient time for Saskatchewan
producers and communities, through area transportation planning and
with the assistance of our Shortline Advisory Unit, to undertake the
necessary analysis to determine the lowest cost transportation
alternatives to service a region including continued rail service as a
shortline railway."

CP has indicated it will be releasing an updated three year plan every
six to twelve months.

"I am also concerned that CP has not revealed their entire plan and
every six months to a year another significant portion of the
Saskatchewan network will be identified for abandonment," Renaud said.

"CP's announcement will increase the strain on provincial resources to
maintain and upgrade roads. The limited financial assistance under the
Canada-Agri Infrastructure Program is inadequate to address the road
impacts associated with the loss of the Crow Benefit subsidy and
federal transportation policy changes."


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For more information, contact:

Bernie Churko
Highways and Transportation
Regina
Phone: (306) 787-4866

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