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PROVINCE BATTLES RAILWAY RATES

Released on August 12, 1999

The public and the province will team up to argue why national railway

companies are charging too much for Saskatchewan branch lines.



The Canadian Transportation Agency (CTA) has confirmed a public

hearing will take place later this year. The focus will be on the

cost of the 46.2 mile Cudworth rail line in central Saskatchewan.



The Provincial Government will be a full party at the hearing,

covering all legal costs and providing resources and staff.



The federal government invested $600 million in railways between 1979

and 1990. The Cudworth line received a portion of that money. Now,

CN and CP rail are apparently using the value of that grant money in

their selling price of the short lines, artificially increasing the

value.



"The Cudworth subdivision is only one critical example of overcharging

in our province," said Highways and Transportation Minister Judy

Bradley. "CN announced it was abandoning that specific track last

year and would sell it for $1.6 million. This spring they have jacked

the price to well over $3 million, expecting local governments to pay

this unreasonable price."



This case is expected to set a precedent for all Saskatchewan branch

lines. If the local community wins its argument, it could

potentially save $2 million to $3 million on this line. In

the future, other branch line investors may have the same

opportunity.



The federal government's grant money was to ensure these tracks

would be in good condition and operating for longer than 10

years. The provincial government and interested branch line

buyers are arguing the rail lines have a lot more life left in

them.



"Right now, CN and CP have the power to put viable short line

tracks out of business," Bradley said. "Saskatchewan people need

a chance to express their views on this entire issue and a formal

hearing is exactly what is required. To allow rail lines to sit

there abandoned is a complete waste."



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For more information, contact:



Ed Zsombor, Director, Rail Projects

Highways and Transportation

Regina

Phone: (306) 787-5847

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