The Saskatchewan government is selling hopper car fleet to three shortline railways.
The government said in a news release it has commitments from three Saskatchewan shortline railways to buy the Saskatchewan Grain Car Corporation’s fleet of 898 hopper cars for $9.7 million.
“With approximately 14 years of service life remaining, the fleet still has value in the industry,” Minister Responsible for the Saskatchewan Grain Car Corporation David Marit said.
“Selling the cars to our shortlines means they will continue to move commodities grown by Saskatchewan producers.”
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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 Ministry of Highways and Infrastructure, an independent consultant, legal counsel and a fairness advisor to supervise and monitor the fairness of the competition, the release said.
Here is the break down of the sale:
- Big Sky Rail Corp. (663 cars)
- Great Western Railway Ltd. (150 cars)
- Great Sandhills Railway (85 cars)
Final details of sales agreements are being completed.
Th sales will likely be made final in the next two to three months.
