Financial details have yet to be worked out but key roads will be upgraded as the first step toward a new Canadian Pacific Railway intermodal facility west of Regina.
The federal government announced Dec. 7 a $27 million contribution to the $93 million project under its Building Canada infrastructure program.
However, neither the provincial government, the city nor CPR could say how much they will spend or whether the project could proceed if the province doesn’t put money into the facility.
The facility will likely cost between $40 and $50 million, said Jim Buggs, general manager of CPR’s port and gateway strategy.
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The new Saskatchewan Party government has said it won’t directly invest in such projects but it is willing to spend money on roads.
CPR’s current facility is in downtown Regina, which leads to traffic congestion as large trucks move in and out.
Provincial highways minister Wayne Elhard noted that the existing facility handles 40,000 container trips each year.
A new site near the airport and CPR’s main line, but outside the city, would ease traffic flow.
At last week’s announcement officials provided few answers to questions about the facility.
“This is about the infrastructure,” said Regina mayor Pat Fiacco.
The infrastructure includes upgrading Pinkie Road at the city’s west edge to connect Highways 1 and 11 and other streets in the city road network.
CPR would also improve its rail line.
Federal agriculture minister Gerry Ritz said 700 trains roll across the CPR main line every month. Increased traffic from potash and specialty crops are largely responsible.
“Current projections suggest we’re going to have another 75 to 80 trains in the system every month,” Ritz said.
Saskatchewan is a trade-dependent province, added Elhard.
“Exports account for about three-quarters of all the goods and services that our economy produces,” he said.
Buggs said a modern intermodal facility would be another economic driver in a region already experiencing growth. It could attract other businesses and partners.
“The relocation and expansion of CP’s Regina intermodal facility will allow us to serve our customers in southern Saskatchewan much more efficiently and provide the required rail capacity to handle the future intermodal growth opportunities,” he said.
Work on the roads is expected to begin in the fall of 2008 with the project scheduled for completion by 2012.
