Logistics park planned for Oyen, Alta.

The town of Oyen, in east central Alberta, will be home to a proposed new transload and rail logistics facility.

Sources say construction on the Oyen Rail Yard & Logistics Park will begin this fall.

The 155-acre facility is billed as a multi-phase economic development project, to be managed by Alberta’s Special Areas Board, the Town of Oyen and the Palliser Economic Partnership.

Rail service will be provided by Canadian National Railway.

A news release issued by the Town of Oyen says Phase 1 of the project will transform the existing railyards north of Oyen into a logistics park capable of managing up to 2,500 cars annually.

The facility will handle a variety of materials ranging from agricultural products to industrial construction components and frac sand.

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The initial phase of construction comes with an estimated price tag of $2.1 million and will include initial site work, upgrades to existing railway infrastructure and the construction of new rail facilities.

Iron Horse Energy Services of Medicine Hat, Alta., will be among the park’s first tenants.

Iron Horse will ship frac sand and other materials from the park to destinations in eastern Alberta and western Saskatchewan.

“We are excited about the opportunity to bring new investment and economic opportunities to our town, and to our surrounding communities,” said Oyen mayor Doug Jones in a news release announcing the facility.

“This project will create jobs, both direct and indirect, it will support future development and it will help maintain Oyen and area as an attractive place to do business.”

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Iron Horse vice-president Todd Garman said Oyen is an ideal location from which to distribute frac sand given the town’s proximity to drilling activity Alberta and Saskatchewan.

CN will provide service to the facility and will continue to work with the Special Areas Board and the Town of Oyen in an effort to develop the park and transload facility.

CN currently owns a branch line that runs from Oyen through Kindersley, Sask., and Rosetown, Sask., en route to Saskatoon.

The project has support from various jurisdictions, including the Town of Oyen and a number rural municipalities in southeastern Alberta.

Oyen is located about 200 kilometres north of Medicine Hat.

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Contact brian.cross@producer.com