Funding boost for Sask. short-line railways in latest budget not enough, Opposition says
13 regulated short-line railways operate more than 2,100 kilometres of track in Sask.
The Saskatchewan government highlighted its recent increase in funding for short-line railways at a news conference on Tuesday, but an expert and the province's Opposition say the industry needs more.
In the 2025/2026 budget, released in March, the province raised its funding for short-line rail to $1-million — an increase of $470,000, or 88 per cent, from last year's budget.
Thirteen provincially regulated short-line railways operate on more than 2,100 kilometres of track in Saskatchewan. It's an alternative to Class 1 lines like Canadian National Railway. The smaller trains transport goods to larger rail lines.
"We are the first mile and last mile of the operation. So our job is to put producer agricultural products like fertilizer, give them a spot where they can load and unload, and get that product to a market," said Glenn Pohl, senior railway specialist with Xpert Railway Consulting, on Thursday.
Highways Minister David Marit said on Tuesday that the government recognizes the key role rail transportation plays in supporting Saskatchewan's export-based economy. That, he said, is why it chose to re-announce the $1-million from the budget.
"Short-line railways are an integral link that help move our commodities to markets around the world," Marit said.
He added that short-lines are a safe and efficient way to move bulk product, reducing wear and tear on Saskatchewan highways.
Upgrades and expansion
Funding from the Ministry of Highways' Short Line Railway Improvement Program (SRIP) will be used for track upgrades and expansion, upgrades on crossing surfaces, bridge maintenance, track upgrades and other projects.
According to the province, SRIP is a 50-50 cost-sharing program between the provincial government and privately-owned short-lines, meaning total funding for short-line rail infrastructure is set to be $2-million this year under the program.
Saskatchewan's Opposition NDP says more money should go to short-rail infrastructure.
On Thursday, Opposition Leader Carla Beck called on the federal and provincial governments to work together to support expanding short-line rail as vital trade-enabling infrastructure.
"Since the very beginning of the threats from our neighbours to the south, people in this country have been talking about the importance of building out trade infrastructure, reducing our reliance on the United States," Beck said.
"One thing we need to ensure is that we get [our] world-class products to market efficiently."
Pohl said Xpert Railway Consulting is grateful for the province's $1 million, but that it's not enough. That money is split between the 13 Saskatchewan railways.
"The short-line industry has many challenges — infrastructure growth, maintenance costs, property taxation — but it's becoming more important to the network within the network, to provide an option to complement our Class 1 partners on first and last mile service," Pohl said.
"Our supply chain will flourish with the growth of short-lines, inter-provincial utilization, and industrial partners. Our supply chain needs us more than ever and we are here ready to grow and serve those needs."
Meanwhile, Andrew Glastetter, president of the Western Canadian Short-line Railway Association and general manager of the Great Western Railway of Saskatchewan, said he is happy with the amount of funding the province has allocated to short-line.
"I don't think we want to be seen as all lined-up with our hands out," Glastetter said.
Like Beck, Glastetter said the Great Western Railway of Sask. is keen to look outside the province for more ways to strengthen its short-line railways.
"Our role is very robust in the supply chain and we're actually looking for growth. How do we contribute further to the supply chain and look to help grow trade and export?" he said.
"One of our next steps is to actually work more at the federal level."
Provincial funding allocations for 2025-26
- Big Sky Rail (Delisle, Eston, Elrose region) - $167,541.
- Carlton Trail Railway (Saskatoon to Prince Albert area) - $71,391.
- Great Sandhills Railway (Swift Current to Leader area) - $82,945.
- Great Western Railway (Assiniboia, Shaunavon, Coronach area) - $250,073.
- Last Mountain Railway (Regina to Davidson) - $56,122.
- Long Creek Railroad (west of Estevan) - $45,000.
- Northern Lights Rail (west of Melfort) - $45,000.
- Red Coat Road and Rail (Ogema area) - $47,456.
- Southern Rails Cooperative (south of Moose Jaw) - $45,000.
- Stewart Southern Railway (southwest of Regina to Stoughton) - $54,471.
- Thunder Rail (Arborfield area) - $45,000.
- Torch River Rail (Nipawin to Choiceland area) - $45,000.
- Wheatland Rail (Cudworth, Wakaw area) - $45,000.
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