The Saskatchewan government is selling its hopper car fleet to three short-line railways.
The government said in a news release it has commitments from three Saskatchewan shortlines to buy the Saskatchewan Grain Car Corp.’s fleet of 898 hopper cars for $9.7 million.
The deal is with:
- Big Sky Rail Corp. — 663 cars
- Great Western RailwayLtd.: — 150 cars
- Great Sandhills Railway: — 85 cars
“With approximately 14 years of service life remaining, the fleet still has value in the industry,” said David Marit, the minister responsible for the grain car corporation.
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“Selling the cars to our shortlines means they will continue to move commodities grown by Saskatchewan producers.”
The sales process started in late March, with Saskatchewan’s 13 commercial shortlines given first priority to buy the hoppers.
The $9.7 million in total sales averages $10,800 per car.
All offers were reviewed by an evaluation committee, which included representation from the grain car corporation, the highways and infrastructure ministry, an independent consultant, legal counsel and a fairness adviser to supervise and monitor the fairness of the competition, the release said.
Final details of the sales agreements are being completed.
The sales will likely be made final in the next two to three months.
