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