Steve Van Wagenen was excited last week about the prospects for the short-line railway he manages in southern Manitoba.
He had just learned that one of the line’s largest customers, an elevator at Mariapolis, Man., will be reopened this spring by an independent grain company.
Delmar Commodities Ltd., a licensed and bonded grain company based in Jordan, near Roland, Man., is buying the elevator from United Grain Growers. The deal is expected to be finalized by March 31.
The elevator, with its 3,780-tonne capacity, had been closed since Dec. 1, 1999.
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“We’re excited about the things that are going on,” said Van Wagenen, assistant vice-president and general manager of Southern Manitoba Railway Inc.
The railway, an affiliate of the Tulare Valley Railroad Company, began its short-line service in southern Manitoba last year.
The short-line runs between Elgin and Morris, Man., along a stretch of track that once appeared destined for abandonment.
During its first six months in operation, the company moved about 600 grain cars, with wheat being the predominant crop. That was about 200 cars short of what CN Rail moved along the track during a similar period the year before.
Van Wagenen said he is not discouraged by the shortfall.
“We just have to push harder in the next six months to get where we feel it is going to break even.”
He thinks flexible and personalized service will attract more customers to the short line.
The company will send out a train with as few as 35 cars. CN had set its minimum at 70 cars.
“We are here, we’re committed to the line and we are a good option.”
One of Van Wagenen’s challenges is convincing larger grain companies to move more grain onto the short line. None of the region’s high throughput elevators were built on that stretch of track.
Martin Harder, president of Delmar Commodities, said the service from Southern Manitoba Railway has been “phenomenal” compared to CN. The purchase of the UGG
facility gives his company two elevators on that line.
Harder said he and Van Wagenen are in a similar boat. They are smaller players navigating their way through an era of consolidation driven by industry giants.
“We’ve been able to do very well,” said Harder, describing the progress of his company. “We have the ability to manoeuvre in amongst the giants and get the job done.”
