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The province of Manitoba recently agreed to provide a $615,000 loan to the Boundary Trails Railway Co. (BTRC) to establish a line between Manitou and Morden.

The total purchase price for the 87-mile line from Manitou to near Killarney will be funded through producer-raised equity and private loans. BTRC plans to operate the line between Manitou and Morden, and salvage a portion of the line from Killarney to Manitou.

"Maintaining this short-line railway will help support shipments of grain and other commodities in the area," said Manitoba Agriculture Minister Rosann Wowchuk in a prepared statement. "In addition … grain destined for producer cars needs only to be trucked to the local short line, as opposed to longer [truck] hauls to mainline elevators.”

Formed in June 2008 by a consortium of Manitou region grain producers, communities and businesses, BTRC will be the first short line in Manitoba owned primarily by producers, said BTRC President Kevin Friesen.

"It has been encouraging to see local producers band together to raise the equity needed to purchase the line,” he said. “We already have many orders from producers for cars to be delivered later in May.”

BTRC has contracted Central Canadian Railway to provide car hauler, maintenance and other services.