Saskatchewan’s short-line railways operate independently but they have begun to work together on common concerns.
The Saskatchewan Shortline Railroad Association held its first formal meeting last month and is already looking at the benefits of group buying and speaking with one voice on regulatory matters.
President Roger Gadd, who is general manager of the Great Western and Fife Lake railways, said the provincially regulated short lines were all meeting with the province’s rail services division several times a year.
“The more meetings we had, we just decided it would be a good idea to form a provincial association and have a bigger voice,” Gadd said. “We also wanted to talk as one association with (Canadian National and Canadian Pacific railways).”
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Each short line has a different confidential contract with the major railways, he said, but there are ways to work together for more clout.
Gadd cited insurance requirements and car allocation as examples.
As well, each short line buys its own equipment but an association could get better deals.
“We could go and get ties for our maintenance program, or crossing planks,” he said. “If we bought on a larger scale there should be cost savings.”
The association is discussing umbrella coverage with a large insurance company.
At last month’s first quarterly meeting, the membership met with Saskatchewan highways and infrastructure minister Wayne Elhard to talk about financial support for short lines.
“He realizes the importance of short lines,” Gadd said. “We know that we can work with him.”
Gadd said he’s pleased with the progress of the infant organization.
It was formed last October by six short lines: Great Western at Shaunavon; Fife Lake at Coronach; Red Coat Road and Rail at Viceroy; Southern Rail Co-operatives at Avonlea; Thunder Rail Railroad at Arborfield and Wheatland Rail Co-operatives at Cudworth.
Two others, Carlton Trail Railway at Prince Albert and Torch River Rail based in White Fox, have also signed on.
Gadd said the eight represent the entire industry in Saskatchewan.
He noted there are about 40 short lines in Canada but no national association. Some short lines are members of the Railway Association of Canada, which includes CN and CPR.
Great Western is the largest in Saskatchewan, servicing about half of the 1,400 kilometres in the province.
“Last year we hauled 5,000 cars,” Gadd said of Great Western’s impact on grain transportation. “That equates to approximately 20,000 semis that we took off the road.”
As the price of fuel escalates, it is becoming more expensive for all haulers. Farmers who can take their grain 10 to 20 km to producer loading facilities along a short line can save money compared to those who have to haul 200 km or more to a terminal, Gadd said.
Approximately 60 percent of Great Western’s customers are producer car loaders.
Other short lines haul wood and wood products as well.
Great Western will soon add metakaolin to its list of products as the new mine at Wood Mountain comes into production. That haul could add 2,500 cars per year to the railway’s load.
Gadd added he’s proud of what all short lines have accomplished as they bought abandoned lines, refurbished and maintained them and provided good service to users. He noted the companies pay to maintain their track, unlike truck haulers that don’t pay to maintain highways.
The association could grow. As many as six groups are looking at establishing new railways, including proponents in the Leader, Craik, Gravelbourg, Golden Prairie and Regina areas.
Gadd said CN and CPR both hold the lines involved.
