River Hills Railroad (RHR) has been incorporated pursuant to the Manitoba Business Corporations Act with head office at: Holland, Manitoba for the purposes of the purchase the Glenboro Subdivision between Mile 67.50, near Rathwell, MB to Mile 130.30, near Page, MB (the "Line") a distance of 62.80 miles as a going concern from CP.
The purchase will be effected by acquiring from CP 100% of its ownership interests in the Line . RHR will control all of the fixed assets required to carry on the planned rail service.
The principals of RHR recognize the importance of short line rail services to the agricultural, industrial and financial stability and viability of south central Manitoba. They also recognize the significant business opportunity the purchase of the Line can provide to enable RHR to assume care and control of the transportation services required by industry and producers in the operational area, with the view ultimately to operating a profitable short line.
RHR's shareholders consist of agricultural producers adjacent to or near the Line, private agri businesses, RMs and towns. Further, RHR will undertake the steps necessary to foster the development of sustainable producer car loading facilities and operations on the Glenboro line.
To date, RHR: has engaged RWM who have met with CP and commenced negotiations to acquire the Line; has raised seed capital, and commenced the necessary due diligence; has organized a preliminary inspection of the physical condition of the line.
RHR will handle all rail traffic for carload rates as negotiated with CP plus a loaded car surcharge as required, and will publish its own tariffs for new traffic it may generate (other than grain traffic).
RHR can assume ownership and operation of the Line on or before June 1st, 2010, provided all regulatory approvals can be granted by May 15th, 2010.
