Local producers buy Canadian shortline

A group of local grain producers is playing a live game of monopoly, local newspapers report. However, it is taking the "Chance card" from the game by taking matters into its own hands. The members of the group will be the first Alberta independent co-op owners after coming up with the winning bid to purchase a rail line from Camrose to Alliance.

"We received the news on
Aug. 17 that our bid to purchase the line has been accepted," said Reg Enright
of Rosalind, spokesman for the newly formed Battle River Railway New Generation
Co-op. "We will purchase the 51.5 miles of track and about 700 acres of land
for $4.8 million."

The rail line has been in
use by local farmers since 2003 as an alternative to shipping their own grain
to the coast.

"This line has heavy 132-pound
steel, which is as heavy as the main regular track lines," he said. "We outbid
K and S Materials from Salt Lake City, the largest rail steel salvage company
in North America. They wanted to salvage the track, but we were able to keep it
operating. The steel is worth more than our bid, but we wanted it to ship grain
and expand the volume to include shipping other goods.

"We want to expand the
amount of business that we have on the line," he said. "We had 650 cars filled
this year. This year the crops are down so it might be tough to match that next
year, but we want to include other businesses and ship goods to keep it busy.
During the peak time in 1994, according to the Canadian Grain Commission, 2,000
cars were shipped. We certainly have room to expand and grow."

The new railway co-op
hopes to sell shares in the track by mid-September.

"We are going to open it
up to both farmers and non-farmers. A producer meeting will occur in the fall
to provide more details on how people can buy a piece of the rail line."

A major upgrade in the
tracks was completed in 1988, so the track is still in good shape. Cars
currently stop in Kelsey, Rosalind, Heisler, Forestburg, Galahad and Alliance,
where grain producers fill them for shipment to Vancouver. There, they are
loaded on to ships for shipment around the world. Most towns on the line have
hoppers to fill and use prior to the arrival of the rail cars.

"Rail producer cars are a
really important option so we don’t have to rely on inland terminals," Enright
said. "Owning the line means producers will have two days to load rather than
one and will still be able to realize the $1,000 savings in elevation charges.
It adds up over the years."

The old producer group
using the line had 175 members, and more than 100 steady users.

"Right now we don’t have
$4.8 million, but selling shares will generate income," he said. "We want to
make this an investment opportunity for a variety of people. We have share
options from A to F. The tracks run through two counties and six towns, so the
possibilities are there for us to grow a lot. Saskatchewan has 11 independent
lines that work. We will have the first one in this province."

The membership group is
expected to take full possession on Jan. 15, 2010.