Canadian government provides financial support for local rail line

Written by jrood

Leon Benoit, MP for Vegreville-Wainright, announced that the Government of Canada is trying to make access to markets easier and will be providing $59,500 in grant funding to the Battle River Railway New Generation Co-op that is headed by Daysland, Alberta, resident Ken Eshpeter, the Camrose Canadian reports. The federal contribution will be used by the co-op to acquire a short line railroad.

The funding was provided
under the Government of Canada’s Co-operative Development Initiative and the
project qualified, as it will promote access to rail transportation of farmers’
grain crops.

"This co-operative
is addressing an important regional issue-grain shipment," said Benoit.
"By using the co-operative model to purchase a rail line that was on the
verge of closing, these farmers took charge of the situation to ensure the
survival of their economic activities."

Since 2003, the Battle
River Railway Co-operative has made certain that the grain crops of the 180
farmers who are members have been loaded and transported on the CN rail
network. In November of 2008, CN announced its decision to stop providing rail
service along the branch line, jeopardizing the local farmers’ access to
crucial markets.

The farmers decided to
form a new generation co-op to purchase the short rail line to ensure that
their crops would continue to be transported along the rail line. The group
will operate a section of the railway, providing access to transportation that is
a cheaper option than trucking. The goal is to carry more than 1,000 cars of
grain per year.

The Battle River Railway
Co-op is one of many projects funded under the federal CDI program, a
four-year, C$19.1-million program that helps Canadians develop new
co-operatives and experiment with new, innovative ways of using the
co-operative model.

The initiative has been
successful in making the co-operative option readily available to Canadians by
improving access to advisory services, helping co-operatives gather necessary
funding, as well as advancing research and knowledge development.

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