13 August 2010

Lakeline Could be Lifeline

Painting of the old Canadian Pacific station at Winnipeg Beach.

Gimli Manitoba - To Canadian Pacific, about 60 km of railway ties stretching from Gimli to Selkirk could amount to little more than junk in a few years. The iconic rail company has no use for its Winnipeg Beach line anymore. But to local producers who are eager for the chance to operate their own shortline railway, that piece of track holds the promise of untold treasure.
 
Randy Penner and Barrie Sigurdson founded Lakeline Railway almost a year ago to unite local producers in efforts to save the line, which could offer them a more direct hauling option for their goods.
 
"These rail lines are very much worth saving," says committee co-chair, Barrie Sigurdson. "It'd be a shame to let them go."
 
Canadian Pacific's Winnipeg Beach line, which starts at Diageo Canada's distillery in Gimli and ends near Selkirk Shipyard, services just one client, Diageo. Because business on the line isn't growing, the track isn't a viable long-term railway operation for Canadian Pacific, said Kevin Hrysak, media contact for the western region.
 
Nine months ago, Canadian Pacific came up with a plan through the Canada Transportation Act to discontinue its Winnipeg Beach line within three years. According to the federal legislation, come November, CP could start taking steps to abandon the line unless a community-based, government-endorsed, group expresses interest in acquiring the line for continued operation. Though the details of any negotiations to sell the shortline are confidential, Hrysak confirmed that CP has talked to an interested party.
 
Well, Lakeline Railway is more than interested. The local coalition is downright hopeful.
 
Thinking Globally, Acting Locally
 
Sigurdson, who farms about 1,500 hectares of grain, oil seed, and hay near Gimli, insists independent operation of the shortline track would give area farmers more direct marketing options. "It's the most efficient way to haul," he said.
 
For locals, being able to load their own rail cars could be a means of saving money, about $1,500 per car load equalling 90 tonnes, adds Randy Penner, a longtime Petersfield-area producer who will harvest his 37th crop this season.
 
"We have to look outside of the local area to understand the market," said Penner. "A lot of times, we have blinders on. All we see is our little area, the problems we have. But really, we have to look at a larger scope."
 
When hauling their products to nearby elevators, such as Viterra's Stonewall Grain, Interlake farmers face handling charges. For grains exchanged by the Canadian Wheat Board, including wheat, durum, and barley, Penner said fees of about $15 per tonne can be eliminated. That reduction in cost is an immediate benefit to producers loading their own rail cars using the Gimli-Selkirk shortline, he says.
 
Lakeline Railway has already obtained use of the old Netley elevator, and hopes to collaborate with industry leaders, including Mission Terminal and Diageo, to make the shortline operation successful.
 
Chief administrative officer for the RM of St. Andrews, Sue Sutherland, said council is aware of the Lakeline Railway initiative and has met with organizers. Sutherland confirmed the RM of St. Andrews will support the continued efforts of Penner, Sigurdson, et al.
 
Former chair of the House of Commons' standing committee on agriculture and agri-food, James Bezan has also met with representatives from Lakeline Railway. "I think it's a great business plan," he said. "No doubt, the Interlake has to have some rail service for the movement of grain."
 
Bezan noted the success of other locally-run shortlines across western Canada, including one operated in southern Manitoba near Manitou.
 
The Selkirk-Interlake MP mentioned there is provincial support for local efforts to save the Winnipeg Beach line as well. An undertaking such as this would need to involve all levels of government.
 
But while officials are on board, a great deal more support for Lakeline Railway is still needed from area farmers, say Penner and Sigurdson. From an investment standpoint, the committee has only secured about one-fifth of the required funding so far. In order to raise the capital, Lakeline Railway hopes local producers will commit to purchasing shares by the end of this year.
 
Bad Timing
 
"Unfortunately, the timing is very bad with the crop situation in the Interlake, particularly the north Interlake," said Sigurdson. "All we're concerned about, myself included, is the bottom line," reasons Penner. Interlake farmers are struggling with drowned-out and dirty, weed-strewn fields. But both Penner and Sigurdson are sure Lakeline Railway is a savvy long-term investment for area producers.
 
Last month's dramatic rise in wheat values, from about US$5 per bushel at the end of June, to US$8 as of 5 Aug 2010, could be a source of optimism for Lakeline Railway. The largest monthly percentage gain posted since 1959, an increase in market value is good news as long as there are bushels to be sold, Penner said. "But we have a little bit of optimism (now) that prices may be better than we anticipated," Penner added.
 
Jennifer Pawluk.