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The governments of Canada and Saskatchewan announced plans to provide up to $27 million for the Regina Region Inter-Modal project as part of the Asia-Pacific Gateway and Corridor Initiative.

Estimated to cost $93 million, the project calls for constructing a Canadian Pacific Railway intermodal terminal near Regina, upgrading a road connecting to the facility and improving nearby grade crossings.

"The project will enhance rail transportation efficiency in the Regina region, particularly with regard to the movement of in- and outbound containers," said Wayne Elhard, Saskatchewan's minister of highways and infrastructure, in a prepared statement.

The federal and provincial funding is contingent on the project meeting certain federal eligibility requirements, the completion of an environmental assessment and negotiation of a contribution agreement among project sponsors.