News

THREE SASKATCHEWAN SHORT LINE RAIL LINES PURCHASE CARS

July 5, 2017

The provincial government has secured commitments from three Saskatchewan shortline railways to purchase the Saskatchewan Grain Car Corporation’s (SGCC) fleet of 898 hopper cars for $9.7 million.

“With approximately 14 years’ of service life remaining the fleet still has value in the industry,” Minister Responsible for the Saskatchewan Grain Car Corporation David Marit said.  “Selling the cars to our shortlines means they will continue to move commodities grown by Saskatchewan producers.”

The sales process was initiated in late March, with Saskatchewan’s 13 commercial shortlines given first priority to purchase the hopper cars.  The $9.7 million in total sales averages $10,800 per car.  All offers were reviewed by an evaluation committee which included representation from the SGCC, Ministry of Highways and Infrastructure, an independent consultant, legal counsel and a fairness advisor to supervise and monitor the fairness of the competition.

After extensive review, the following offers were accepted:

  • Big Sky Rail Corp. (663 cars)
  • Great Western Railway Ltd. (150 cars)
  • Great Sandhills Railway (85 cars)

Final details of sales agreements are currently being completed.  It is expected that the sales will be finalized in the next two to three months.

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For more information, contact:

Doug Wakabayashi
Highways and Infrastructure
Regina
Phone: 306-787-6815
Email: Doug.Wakabayashi@gov.sk.ca

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