Feds to help Regina with rail relocation plan; other projects also get funding

The Canadian government is looking to make the wheels of trade run a bit smoother in Saskatchewan.

The feds announced more than $18 million in funding Thursday to go to improvements to southern Saskatchewan’s rail infrastructure.

Federal Transport Minister Omar Alghabra made the announcement at the Intermodal hub east of Regina. He said the challenges of the last few pandemic years have affected every part of the supply chain and Canadians are worried about affordability and inflation.

“I want Canadian families to know that their government is working to ease pressure on our supply chain, and I want them to be confident that the essential goods they need will be there on time,” said Alghabra.

The $18.3 million will go to four projects and is to be matched with private sector and municipal funds. AGT Foods and Ingredients Inc., is getting money to help with some of its projects.

“We’ve always wrestled with transportation-related issues, especially during cold Canadian winters and with high volumes in peak periods such as the harvest that will just be upon us in another month,” said Murad Al-Katib, president and CEO of AGT Foods.

Al-Katib said Saskatchewan agriculture has a tremendous opportunity with what’s going on in Ukraine and Russia creating a huge need.

“The world is facing a global food crisis, food inflation is rampant and we’ve had a relatively good weather pattern this year after one of the most severe droughts of 50 years. We need to get our products to market and products are not only existing on mainline railways,” said Al-Katib.

He explained that in a landlocked province, producers are dependent on rail and roads to get products to market, and he praised the federal government for coming in with support for short-line rails in Saskatchewan.

“The improvement of the short-line infrastructures in this province is going to be key to us realizing billions of dollars of new economic benefits over the next decade,” said Al-Katib.

“These investments that we’re announcing today are not just investments for this next season, it’s how do we get 10 to 15 million more tonnes to market? How do we accommodate 4 million more tonnes of potash?”

Al-Katib said that while the project likely would have gone ahead even without the federal money, the cash will allow the projects to get done several years sooner.

One of the projects is $1 million for the preliminary design to move the rail tracks crossing Ring Road in Regina — something city council has been working on since 2019.

“The relocation solution the city is pursuing would improve the flow of goods and people, not only for Regina but also for Saskatchewan and internationally,” said Deputy Mayor Lori Bresciani.

The total cost of the design is $2.4 million and Bresciani said it will include engineering investigation and design, addressing operational needs, engagement and refining an estimate on cost.

The other three projects include federal funding of:

• $13.5 million for a railway grade stabilization project near Eston. Last Mountain Railway also will invest $13.5 million;
• $1.6 million for a new pre-interchange yard on the Canadian Pacific Railway Interchange near Assiniboia. Great Western Railway also is putting up $1.6 million; and,
• $2.2 million to build 12,000 feet of additional track to address congestion issues at the interchange between the Stewart Southern Railway and Canadian Pacific in Lajord. Purely Canada Foods also will contribute to the project for a total of more than $6.5 million.