Omnitrax, a Denver-based short-line rail company, has been selected as the winning bid and is negotiating with CN Rail to buy 450 kilometres of rail line in northwestern Saskatchewan.
“As a finalist in the tender process, Omnitrax is now carefully examining the line and facilities, talking to potential customers and current CN staff affected by the sale,” said Jim Feeny, of CN Rail.
Feeny said when the two lines were put up for sale in July, people living alongside them expressed concern that CN was really interested in closing the lines and the tender for sale was a formality.
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“Those lines are very busy, both with grain and forest products and have been profitable for CN.
“We are trying to focus on what we are good at. Short-line hauling is not one of our strengths. We are better at the long-haul, high-density stuff. That is why we chose to sell,” he said.
CN said Omnitrax won the option to negotiate for the purchase because of its experience with short lines in the United States and its recent purchase of the 1,200 km rail line that feeds Churchill in northern Manitoba. As well, Omnitrax bought the Churchill port corporation earlier this month.
The Saskatchewan lines being sold handled 16,850 carloads last year. An Oct. 31 target date for the sale is planned.
