20 August 2009
Feed Company Engineers Purchase of Railway Track
Armstrong British Columbia - Extreme measures are
underway to keep a North Okanagan business firmly on track.
Sure Crop Feeds is attempting to purchase the 13-kilometre rail line between Armstrong and Grindrod to ensure it isn't
shut down.
"They rely entirely on rail service for inbound grain," said Marian Robson, a consultant working for the firm which sells
livestock feed and forage seed.
"They don't want to be in the rail business, they're in the feed business. But they need to take action and get into it."
Grindrod-based Sure Crop and Okanagan Fertilizer in Enderby learned in the spring that Okanagan Valley Railway would stop
running the line for economic reasons. The line is owned by Canadian Pacific.
Without the service, the two businesses would be forced to ship their product by truck and that would significantly increase costs.
Robson says Sure Crop hoped other firms would take over the line but when that didn't materialize, a decision was made to try and
acquire the track itself.
"They are currently in negotiations with CP for acquisition and discussions with four potential operators."
There is no timeline for negotiations to end, but OVR could discontinue service 31 Aug 2009. Until talks with CP are
over, an interim operator may have to be found, or trucks may have to be used temporarily.
Purchasing a rail line is an expensive proposition and Sure Crop is seeking assistance from the Western Diversification Community
Adjustment Fund and the Southern Interior Development Initiative Trust.
Robson believes it's crucial for Sure Crop and Okanagan Fertilizer to maintain rail access.
"It's a critical situation for the companies but also for the agricultural community," she said.
"If Sure Crop closes, they (farmers) would have to get their feed from the Fraser Valley or Alberta."
Sure Crop's bid for government funding has the support of the North Okanagan Regional District, which is writing SIDIT.
"There are two strong businesses affected by this. They are established and have been there forever," said Herman Halvorson,
NORD chairman and Grindrod director.
"Sure Crop's business extends into the States and up into Vanderhoof."
Will Hansma, Spallumcheen director, is concerned that the loss of rail service and possible closure of the companies could drive up
costs for local farmers.
"They are tremendously important to agriculture. Fertilizers and feed are always used by the agricultural community," he
said.
Richard Rolke.
|
|
