Teamsters Canada Rail Conference

Last Mountain Railway operating between Regina and Davidson was officially launched Thursday by Highways and Infrastructure Minister Jim Reiter.

Reiter noted that the shortline railway is taking over a stretch of CN's rail line that was slated for abandonment.

"This stretch of rail line hadn't been used in some time, so they had to do some work to get it back into shape,'' Reiter said. "You've got lines that, if the shortlines weren't operating, they'd either be abandoned and just sitting there or just be removed.''

Reiter added that shortlines help revitalize rural communities, provide transportation options for local producers and boost the provincial economy. "It's good for the producers, it's good for the company and it's good for the citizens of the province.''

Last Mountain Railway received a $1.6-million interest-free provincial government loan toward the purchase price of $5.1 million for 108 km of track between Davidson and Lumsden from CN.

The new shortline will lease from CN the remaining 27 km from Lumsden to Regina with a future option to buy.

"Last Mountain Railway provided a strong case for shortline operation north of Regina," CN vice-president of network strategies Francois Hebert said. "We look forward to a long-term relationship with this new shortline partner."

Last Mountain Railway, which began operating in mid-summer, also received an $8,000 provincial government study grant to investigate the viability of the shortline.

The province supports shortline rail through a trio of programs that includes grants for feasibility studies and infrastructure, along with loans to purchase existing track.

"We are very excited about the future potential of this railway," Last Mountain Railway's Director Sheldon Affleck said. "We also look forward to working with CN and local producers to expand and diversify our rail traffic and services."

Last Mountain Railway is a partnership comprised of Mobil Grain Ltd.; the towns of Davidson and Craik; the villages of Chamberlain and Kenaston; the rural municipalities of Sherwood, Arm River, Willner, McCraney and Dundurn; along with several private investors.

Saskatchewan has 10 operational shortlines covering about 1,700 km of provincially-regulated track. These provincial shortlines connect to about 7,100 kilometres of federally-regulated rail lines in Saskatchewan.