August 13, 2012

New short-line railway launched in Manitoba

WINNIPEG

With provincial support of $1.25 million, Lake Line Railroad (LLRR) is launching a new short-line freight railway between Gimli and Selkirk in Manitoba, it was recently announced.

LLRR, owned primarily by farmers in the Interlake, purchased approximately 50 kilometres of rail line from Canadian Pacific Railway.  In addition to the province’s contribution, the cost of purchasing the rail line has been funded through producer-raised support and private loans. Under the terms of agreement with the province, LLRR is required to operate the short-line railway for at least 10 years or repay the funds.  The province also provided Lake Line Railroad with $20,000 in late 2010 to complete a feasibility study on the purchase of the rail line.

Lake Line Railroad has started freight rail service to shippers along the rail line and to Hudson Cement in Selkirk.  LLRR also has an agreement to provide freight services to Diageo Distillery’s plant in Gimli and expects to attract grain shipments from local farmers.

In 2009, the Boundary Trails Railway Company (BTRC) established a short-line railway between Manitou and Morden with a contribution from the Manitoba government.  BTRC is also an association of farm producers and business leaders.  As well, Keewatin Railway Company, a consortium of three First Nations, set up a short-line railway in 2005 with support from the Manitoba government. 

DCN NEWS SERVICES

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