GRANT PROVIDED TO HUDSON BAY ROUTE ASSOCIATION

Released on March 30, 1999

Saskatchewan Highways and Transportation Minister Judy Bradley today

announced the department is providing a grant of $1,500 to the Hudson

Bay Route Association to assist its ongoing efforts to improve the

competitiveness of the Port of Churchill.



"The Saskatchewan government supports the efforts of the Hudson Bay

Route Association to ensure that our grain producers continue to

benefit from the Churchill transportation system," Bradley said. "The

strategic location of Churchill and efficient port and rail services

make it an attractive option for meeting the needs of our customers.

Churchill is important to Saskatchewan producers, who accounted for

80 per cent of the grain exports handled at the port in 1997/98."



"I am encouraged by the increasing numbers of producers who are aware

of the advantages of using Churchill," Hudson Bay Route Association

President Arnold Grambo said at their 56th annual convention in The

Pas, Manitoba. "I'm equally encouraged that the Saskatchewan

government is supporting our efforts to ensure that Churchill will

continue to be there well into the future, to improve the bottom line

of producers."



"Over the years, the Hudson Bay Route Association has played an

important role in identifying options for maintaining the

viability of Churchill," Bradley said. "The Saskatchewan

government is pleased to support the work of this organization,

which can reduce transportation costs for our producers through

initiatives that promote increased use of Churchill. Our

producers cannot afford further increases in freight costs, which

now exceed $40 per tonne for some points in eastern

Saskatchewan."



Following the Estey Review, opportunities exist to enhance the

competitiveness of Churchill. The Estey Review recommended that

national policy and planning should ensure that Churchill has a

reasonable chance of commercial success, because it is a natural

route for grain exports from eastern Saskatchewan and western

Manitoba.



The Saskatchewan government is pursuing a number of initiatives

that improve grain transportation performance, to increase

returns to producers. These include working with producer groups

to support the development of short-line railways, pressing for

changes in the grain handling and transportation system that

benefit producers under the federal grain review process and

pursuing increased federal funding to support improvements in the

Saskatchewan rural road system.



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For more information, contact:



Kim Graybiel

Senior Analyst, Intergovernmental Issues

Highways and Transportation

Regina

Phone: (306) 787-4121