BRADLEY OFFERS PROVINCIAL SUPPORT FOR GRAIN LOGISTICS PILOT PROJECT

Highways and Transportation Minister Judy Bradley today signed a

Memorandum of Understanding with West Central Road and Rail and Golden

Prairie Short Line Rail Co-op in which the government has committed to

support a Grain Logistics Pilot Project.



"I am extremely pleased Highways and Transportation can support these

two groups in their efforts to develop alternate grain handling

services to increase the net incomes of producers," Bradley said.

"The department is providing technical support and up to $100,000 to

aid in the design and implementation of the Grain Logistics Program."



Studies have indicated that there are substantial savings to be

generated through improved logistics systems that increase the

efficiency of how grain is moved to market.



"The Grain Logistics Pilot Project tests a concept that is designed to

reduce farmers costs for grain handling and transportation by

eliminating unnecessary steps," Bradley said.



The Project involves the use of information technology which records

the type and amount of grain a producer has in storage and a system of

blending and obtaining grain in a timely manner to meet just-in time

delivery demands.



"When grain is required to meet the sales commitments of the Canadian

Wheat Board it can be loaded directly onto railcars or handled at

track-side loading facilities further reducing costs to the producer,"

Bradley said.



This means branch-lines will play an important role in the Grain

Logistics Pilot Project. West Central Road and Rail and the

Golden Prairie Short Line Rail Co-op have demonstrated they can

meet the demands of this system.



"As a potential shortline operator, our purpose is to retain

traffic on the line," said Rob Lobdell, President of West Central

Road & Rail. "As a local producer, it is essential to regain a

position in the decision-making process and be allowed to explore

alternatives that will support our bottom line."



"We are always ready to look at creative options that will allow

farmers to maximize their returns," said Ken Ritter, Canadian

Wheat Board Director of district four.



Municipal and Provincial governments will benefit from this

initiative through decreased road costs, retention of a rural

infrastructure, increased income and sustained stability for

rural communities.



"I am pleased my government can work closely with rural

Saskatchewan and contribute in any way we can," Bradley said.

"Finding real solutions in this changing market place will also

help us meet the growing pressures put on our road system and

rural economies."

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For more information, contact:



Bill Cook Rob Lobdell

Grain and Rail Specialist President

Saskatchewan Highways Grain, Rail and Area Planning,

and Transportation West Central Road &Rail

Regina Eston

Phone: (306) 787-5526 Phone: (306) 962-4528