A producer-owned railway between Selkirk and Gimli is now running in Manitoba, which will serve approximately 2,000 farmers in the southern Interlake.
Lake Line Railroad officially launched its 50 kilometre railway yesterday at a press conference in Gimli.
“The acquisition of the rail assets ensures marketing options for farmers in the Interlake and opens up future possibilities for new businesses that are rail-dependent to locate in the Gimli area,” said Randy Penner, the president of Lake Line Railroad, in a statement.
Producers in the region have been working three years to make the short-line railway a reality, Penner added.
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With $1.25 million in financial support from the provincial government, producer investment and private loans, Lake Line Railroad purchased the 50 km of line from Canadian Pacific.
If Lake Line Railroad operates the line for at least 10 years, it won’t have to repay the provincial investment.
“Purchasing smaller branch lines is a viable solution in many regions of Manitoba. It prevents the need for more heavy truck traffic on local and provincial roads,” said provincial trade minister Peter Bjornson.
Besides shipping grain and oilseeds for producers, the railroad will also serve a cement company in Selkirk and the Diageo Distillery in Gimli, which manufactures Crown Royal whiskey.
Lake Line Railroad becomes the second producer-owned railway in Manitoba. Boundary Trails Railway Company has operated a line between Morden and Manitou since 2009.
