A group in northeastern Saskatchewan is looking at buying, upgrading and operating two sections of railway slated for abandonment.
The Tisdale subcommittee is interested in two sections of unused track known as CN Tisdale.
One section of the track runs east from Birch Hills, while the other runs west from Hudson Bay toward Tisdale.
The two sections of track are connected by a shorter piece of track that is still owned and operated by Canadian National Railway.
New owners would likely require a commercial running rights agreement with CN if they wanted to ship products directly from Birch Hills to Hudson Bay.
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CN Tisdale is considered by many to be a potentially viable rail link because it could provide a more direct route from north-central and northeastern Saskatchewan to the Port of Churchill in northern Manitoba.
Goods shipped to Hudson Bay would continue on to The Pas, Man., and then be transferred to a line owned by OmniTrax Canada that connects The Pas to Churchill.
The CN Tisdale line, if operable, could move grain, lumber and potash to port position on a northeasterly route rather than shipping them east to Thunder Bay or west to Vancouver or Prince Rupert, B.C.
Hudson Bay Route Association president Sinclair Harrison said the Tisdale subcommittee has already received an estimate of the line’s salvage value at $4 to $4.5 million.
The next step is to take a closer look at the track to see how much money would be required to repair or upgrade portions that have not been used or serviced for years.
The group, along with OmniTrax Canada, is hoping to put out a call for proposals this fall, inviting companies and consultants to conduct an engineering study on the two sections of track.
The study will determine how much money would be required to upgrade.
Federal legislation requires that prairie rail lines slated for abandonment must be offered for sale before they are torn up.
Salvage value of a rail line is an important consideration because prospective offers normally must equal or exceed a line’s salvage value.
Harrison said rural municipalities along the Tisdale line and other RMs within the line’s catchment area are being approached to determine whether there is sufficient local support to acquire the line.
He said the Tisdale subcommittee would like to have the engineering study completed before the snow flies.
“It’s sort of a hurry up offence,” said Harrison.
“We’d like this study completed as soon as possible so interested parties have time to get their ducks in a row for negotiations (with CN).”
Companies interested in buying the line will likely be required to submit their bids starting next summer.
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