The province and the Canada Infrastructure Bank are putting up $950,000 to study whether it’s feasible to reopen the rail line between Oyen and Lyalta, near Strathmore, that was abandoned more than a decade ago.
“Expanding rail transportation networks presents a tremendous opportunity for east-central Alberta,” Oyen Mayor Doug Jones said in a provincial news release. “This rail development would support growth and opportunities for years to come.”
When it announced the abandonment of the 286-kilometre stretch of track in 2008, CN said the line only saw “sporadic local traffic” and was not economical to operate.
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Re-establishing the connection between Oyen and Lyalta would cost “$500 million or more,” the Medicine Hat News reported.
The Special Areas and Oyen Development Corporation and the Oyen Regional Rail Company are also each putting $25,000 toward the study, which is expected to take a year to complete.
“If approved, the rail line would benefit every sector of our economy and make rural Alberta even more competitive,” said Don Dean of Oyen Development Corporation.
