The Saskatchewan government is nearly doubling its investment in short line railways, a move being welcomed by industry leaders who say it will improve safety, infrastructure, and economic resilience across rural parts of the province.
The 2025-26 provincial budget includes a $470,000 increase to the Short Line Railway Improvement Program (SRIP), bringing the total annual funding to $1 million. The money will be distributed among 13 short line railways operating in Saskatchewan.
The SRIP is a cost-shared grant program that supports infrastructure upgrades and safety improvements for provincially regulated short line railways. Industry groups say the provincial funding often unlocks additional private investment.
“This increase... will provide resources to further enhance our robust safety regime while supporting the highest level of service to our valued customers and the communities in which we operate,” said Andrew Glastetter, president of the Western Canadian Short Line Railway Association (WCSLRA).
Short line railways originate approximately one in five freight carloads across Canada, and in Saskatchewan, they operate nearly one-quarter of all rail kilometres, according to the association.
The WCSLRA represents 19 short line railways across Saskatchewan, Alberta, Manitoba, and British Columbia, along with railway suppliers. The group advocates for improved safety, investment, and supply chain efficiency in rural areas.
“With the recent shifts to the U.S.–Canada trade relationship, Saskatchewan is facing new challenges in its export markets and supply chains,” said Rachel Mackenzie, director of communications and government relations with the WCSLRA.
“Short line railways help producers and businesses move goods efficiently, preserve rural road infrastructure by removing heavy truck loads, and support the province’s economy. The province’s increased investment in the SRIP acknowledges this important role.”
The Saskatchewan Ministry of Highways oversees the SRIP and has not yet released a detailed breakdown of how the additional funding will be allocated among the province’s rail operators.