Newsroom
2005
Farmers to benefit from CWB purchase of rail hopper cars
November 25, 2005
Winnipeg - The CWB's planned purchase of 1,660 used rail grain hopper cars will create financial and strategic benefits for western Canadian farmers, CWB Chief Operating Officer Ward Weisensel said today.
The CWB has announced its intention to exercise options to purchase the cars, which it currently leases to help move farmers' grain to market and port. The purchase, when concluded, will increase the CWB's owned fleet of cars to 3,510.
"The main benefit comes from earning a return for farmers on their investment in these cars," Weisensel said, adding lease arrangements with railways and users should allow the CWB to not only recoup the purchase price, but result in a net profit over the remaining life span of the cars.
"Owning these cars also gives farmers, through the CWB, the opportunity to exercise more control over car supply. It could also help us in negotiating rates and service with the railways."
In addition to exercising its purchase option on these leased cars, the CWB is pleased by yesterday's announcement that the Farmer Rail Car Coalition will acquire another 12,400 federal government-owned cars.
"These initiatives help empower farmers by giving them a bit more control over grain transportation, which is so crucial to their bottom line," said CWB board chair Ken Ritter, a farmer from Kindersley, Saskatchewan.
Negotiations with the vendors have not been concluded. The purchase value will only be disclosed after that occurs and will be included in the CWB annual report.
Controlled by western Canadian farmers, the CWB is the largest wheat and barley marketer in the world. As one of Canada's biggest exporters, the Winnipeg-based organization sells to over 70 countries and returns all sales revenue, less marketing costs, to Prairie farmers.
For more information, please contact:
Maureen Fitzhenry
Media Relations Manager
Tel: (204) 983-3101
Cell: (204) 479-2451