FREIGHT TRANSPORTATION PARTNERSHIP AGREEMENT SIGNED

Released on November 4, 1997

Highways and Transportation Minister Judy Bradley today signed a

10-year trucking partnership agreement with Dennis Banda, President,

Chair of the Board of Federated Co-operatives Limited (FCL).



This agreement will improve efficiency, reduce road costs and create

transportation savings for FCL's trucking operations of approximately

$750,000. FCL will contribute one half of the savings toward highway

improvement projects.



In the new agreement, FCL will be able to combine its petroleum and

dry freight haul between Saskatoon and Regina on Highway No. 11. By

using this new truck configuration, the company can improve efficiency

as it hauls petroleum to Saskatoon with full petroleum tankers pulling

an empty freight van. On the return trip, the van will be full of

groceries while the tankers are empty. This new agreement enables

delivery in one truck trip instead of two.



"Federated Co-operatives and the department have an excellent working

relationship that has resulted in many truck safety and efficiency

improvements," Bradley said at a signing ceremony at FCL's food

distribution centre in Saskatoon. "This co-operative effort dates

back to the late 1970s and I am proud to continue that tradition. We

believe that Federated Co-operatives has one of the most progressive,

modern trucking fleets in North America."



"We are pleased to sign this agreement, which strengthens the

close relationship we have had with Saskatchewan Highways and

Transportation for many years," Banda said. "This co-operative

approach helps us to operate more efficiently on behalf of co-op

members and customers."



This new agreement was made possible by the introduction of the

Transportation Partnerships Program in 1994. The program was

created as a new direction for trucking policy in Saskatchewan.

Saskatchewan Highways and Transportation works with shippers and

carriers to custom design truck haul systems that improve highway

safety, reduce transportation costs for industry, and provide

additional revenue for highway improvement projects.



In Saskatchewan, FCL's trucking operations include 39 petroleum

truck/tanker combinations and a merchandise fleet of 24 power

units and 70 merchandise vans.



"FCL has been eager to embrace new technologies and to

participate in the Transportation Partnerships Program," Bradley

said. "This has been a benefit to them and to the people of

Saskatchewan. One of the first highway improvements to be funded

from the truck haul will be the widening of shoulders on sections

of Highway No. 4, south of Meadow Lake."



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For more information, contact:



Les Bell Al Roden

Project Director Federated Co-operatives Ltd.

Highways and Transportation Saskatoon

Regina Phone: (306) 244-3245

Phone: (306) 787-4764