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Rail backlogs could cost Saskatchewan billions: report

The Saskatchewan economy stands to lose billions of dollars if the export of grain, oil and potash by rail isn't improved, according to a report commissioned by the Saskatchewan Chamber of Commerce.

The report makes several recommendations to improve the transport of exports to market. They include exploring more oil pipeline expansion as well as purchasing newer and lighter hopper cars that can carry a wider variety of goods.

Steve McLellan, CEO of the Chamber of Commerce, said that even getting 80 per cent of the province's exports to market will prove detrimental.

"Only 80 per cent leaves $3.6 billion dollars on the table," McLellan said.

He also said that the impact of rail backlogs this past year was unusually high.

"This was a perfect storm in 2013-14," McLellan said. "Cold winters, the biggest crop in Saskatchewan history and the oil sector putting more onto rail than they'd ever done."

Since ocean transport represents the cheapest means of bulk transportation, landlocked Saskatchewan has a greater challenge than other provinces that are closer to Canada's international ports.

See the report in its entirety.