source: Farm and Food Report
It takes determination to raise enough capital to acquire over 300 miles of short rail line, engines and maintenance equipment, and to cover operational costs that includes the salary of 14 employees in southwestern Saskatchewan. Yet, that is precisely what a group of agricultural producers and investors have managed to do in Ponteix, Gravelbourg, Bracken, Admiral, Kincaid, Shaunavon, Eastend, Climax, Frontier, Neville, Vanguard and Lafleche when they acquired Great Western Railway Ltd. recently.
Leo Legault is a farmer and, now, a Director of the company. “In three weeks, our group of 15 raised $3.8 million. We had to deal with complex legal issues and we had much to learn. We wanted to keep all the staff because they have so much knowledge about how to run this operation. We made a formal offer to Westcan a year ago and, on November 2, 2004, it became a done deal.”
Ponteix’s Legault and his partners knew that the stakes were high. In recent years, over $18 million was invested in various grain handling infrastructures along the line. Around 40 jobs depended on this deal coming through. Had the bid been unsuccessful, the future of these new facilities would have been jeopardized.
“We were well aware that the only way to ensure that producers get a greater share of revenues from our agricultural activities would be for us to own the transportation network that links all our towns and villages in the Southwest,” Legault said.
Legault believes that everyone wins as a result of this deal — from those who hold jobs along the line, to taxpayers, governments, producers and municipalities — in savings alone.
“Our studies indicate that our rail transportation system saves $5.4 million in road maintenance costs annually. Our roads simply are not designed to sustain the kind of heavy traffic they are subjected to because of agricultural transportation needs.”
And this traffic is likely to keep on putting additional pressure on highways, as Shaunavon looks at building a $90 million ethanol plant that would require around 10 to 15 million bushels of wheat to produce 150 million litres of ethanol a year.
Conrad Johnson owns a mixed farm in Bracken. He is also the new Chair of the Board of Great Western Railway Ltd. “Look at any country in the world today — look at how closely economic development and diversification are associated with the availability of a rail transportation service. It is phenomenal and particularly relevant to the geography of the Southwest. We want our children to have a future here. We want to ensure the economic prosperity of our region for our grandchildren, and we are taking the means to do just that.”
Putting his beliefs into practice, Johnson and three partners recently acquired an old Wheat Pool elevator along the line and converted it into a state-of-the art field pea cleaning plant. His Whitewater Coulee Cleaners has processed 120 rail car loads of peas in the last two years, plus 300 cars of cereal grains. Johnson is the first to admit that his success and that of the Great Western Railway and other projects along the line now hinges on communities working more closely together than ever before.
“It is funny how, when you look back 20 to 30 years, we had these rivalries between towns in this part of the province about hockey teams, schools and all those divisive issues,” Johnson said. “Things have changed quite a bit since then. I believe we now realize that we must work together for the good of the entire area. We are all proud of what we have accomplished so far and we look forward to the future.”
As far as Leo Legault is concerned, every new day that comes breaks new ground and breeds hope for the economic outlook of the whole region.
“You know, this is the longest short line in Canada,” Legault beams with pride. “Fifty-two per cent of all the grain moved on short lines in Saskatchewan is moved on our railway. When you think of it, there is no end to what we can accomplish — just keep watching us.”
It takes determination to raise enough capital to acquire over 300 miles of short rail line, engines and maintenance equipment, and to cover operational costs that includes the salary of 14 employees in southwestern Saskatchewan. Yet, that is precisely what a group of agricultural producers and investors have managed to do in Ponteix, Gravelbourg, Bracken, Admiral, Kincaid, Shaunavon, Eastend, Climax, Frontier, Neville, Vanguard and Lafleche when they acquired Great Western Railway Ltd. recently.
Leo Legault is a farmer and, now, a Director of the company. “In three weeks, our group of 15 raised $3.8 million. We had to deal with complex legal issues and we had much to learn. We wanted to keep all the staff because they have so much knowledge about how to run this operation. We made a formal offer to Westcan a year ago and, on November 2, 2004, it became a done deal.”
Ponteix’s Legault and his partners knew that the stakes were high. In recent years, over $18 million was invested in various grain handling infrastructures along the line. Around 40 jobs depended on this deal coming through. Had the bid been unsuccessful, the future of these new facilities would have been jeopardized.
“We were well aware that the only way to ensure that producers get a greater share of revenues from our agricultural activities would be for us to own the transportation network that links all our towns and villages in the Southwest,” Legault said.
Legault believes that everyone wins as a result of this deal — from those who hold jobs along the line, to taxpayers, governments, producers and municipalities — in savings alone.
“Our studies indicate that our rail transportation system saves $5.4 million in road maintenance costs annually. Our roads simply are not designed to sustain the kind of heavy traffic they are subjected to because of agricultural transportation needs.”
And this traffic is likely to keep on putting additional pressure on highways, as Shaunavon looks at building a $90 million ethanol plant that would require around 10 to 15 million bushels of wheat to produce 150 million litres of ethanol a year.
Conrad Johnson owns a mixed farm in Bracken. He is also the new Chair of the Board of Great Western Railway Ltd. “Look at any country in the world today — look at how closely economic development and diversification are associated with the availability of a rail transportation service. It is phenomenal and particularly relevant to the geography of the Southwest. We want our children to have a future here. We want to ensure the economic prosperity of our region for our grandchildren, and we are taking the means to do just that.”
Putting his beliefs into practice, Johnson and three partners recently acquired an old Wheat Pool elevator along the line and converted it into a state-of-the art field pea cleaning plant. His Whitewater Coulee Cleaners has processed 120 rail car loads of peas in the last two years, plus 300 cars of cereal grains. Johnson is the first to admit that his success and that of the Great Western Railway and other projects along the line now hinges on communities working more closely together than ever before.
“It is funny how, when you look back 20 to 30 years, we had these rivalries between towns in this part of the province about hockey teams, schools and all those divisive issues,” Johnson said. “Things have changed quite a bit since then. I believe we now realize that we must work together for the good of the entire area. We are all proud of what we have accomplished so far and we look forward to the future.”
As far as Leo Legault is concerned, every new day that comes breaks new ground and breeds hope for the economic outlook of the whole region.
“You know, this is the longest short line in Canada,” Legault beams with pride. “Fifty-two per cent of all the grain moved on short lines in Saskatchewan is moved on our railway. When you think of it, there is no end to what we can accomplish — just keep watching us.”
Comments