BRADLEY PLEASED ASSINIBOIA SHORTLINE DEAL WITH CP IS ON TRACK

Released on March 24, 1999

Highways and Transportation Minister Judy Bradley announced today that

a deal has been reached between Canadian Pacific Railway (CPR) and Red

Coat Road and Rail Ltd. (RCRR) to purchase 115 km of branch-line

between Pangman and Assiniboia in southwest Saskatchewan.



Red Coat Road and Rail Ltd. has been negotiating with CPR for over 10

months to acquire this short line. During this time Saskatchewan

Highways and Transportation, Shortline Advisory Unit played a key role

in providing technical and legal advice to the RCRR group leading up

to and through the negotiation process.



The department also contributed $20,000 to the development of a

feasibility study and worked with RCRR to develop a business plan. In

addition, the province will provide over $176,000 in financial

assistance to help meet the purchase price.



"I am extremely pleased Saskatchewan Highways and Transportation could

assist in saving this valuable section of branch-line in

Saskatchewan," Bradley said. "In the long run this will mean better

returns for producers, less damage to our highway system and more

viable communities in the region.



"As well, I want to congratulate the four person committee that,

from the beginning, have put in endless hours of hard work

raising community support to keep this project alive."



"With the signing of the deal, we have proven that local

communities can have a say in their future," said Kevin Klemenz,

Chair of the RCRR. "We are pleased that grain will continue to

be shipped by rail in our part of the province."



"We were pleased to contribute to the process in any way we

could," Bradley said. "The Government of Saskatchewan believes

saving viable branch-lines across the province will go a long way

in combating the devastating effects rail line abandonment and

elevator closures are currently having on our road system and our

rural economies."



Strong producer and community support also made the agreement

possible. This support is extremely important for maintaining

the long-term viability of the line.



"The Saskatchewan Wheat Pool still has two elevators along this

line, one in Pangman and one in Ogema," Bradley said. "By

supporting this line producers will ultimately be supporting the

long term viability of the grain handling system currently in

place in the region."



A recent study completed by Ray Barton and Associates concluded

that incremental highway costs from changes that have taken place

in the past few years have created an impact of some

$200 million.



Projected increases in grain trucking from a centralized system

are estimated to cost $500 million to our highway system. In

areas where local elevators and rail lines have been abandoned,

this damage is occurring at a more rapid rate.



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For more information, contact:



Mike Woods Ed Zsombor

Communications Director, Rail Projects

Highways and Transportation Highways and Transportation

Regina Regina

Phone: (306) 787-4804 Phone: (306) 787-5526