Thursday, 12 October 2017 06:24

Oyen Rail Yard and Logistics Park Project steaming ahead

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The Special Areas Board and the Tow of Oyen are working together to bring new life and economic opportunities to the Oyen railyard.


The Oyen Rail Yard and Logistics Park Project is a 155-acre multi phase economic development project managed by the Special Areas Board, the Town of Oyen and the Palliser Economic Partnership. Phase 1 of this project  will develop the existing railyards located on the north edge of the town into a logistics park capable of managing up to 2,500 cars annually, bringing in and shipping out a variety of materials ranging from speciality agricultural products to industrial construction project components.
Estimated costs of the initial phase are $2.1 million and this includes upgrades to existing rail, construction of new rail and initial site preparation.
CN Rail is working with the Special Areas Board and the Town of Oyen to bring the project on line and a new transload facility in the region.
Iron Horse has selected Oyen as the site of a new frac sand distribution centre given its ideal location to support the expanding development of energy resource plays in Alberta and Saskatchewan.
“We are excited about the opportunity to bring new investment and economic opportunities to our town, and to our surrounding communities. This project will create jobs, both direct and indirect, it will support future development and it will help maintain Oyen and area as an attractive place to do business. Projects like this give people the opportunity to stay in our community, raise families and having a good life,” said Doug Jones’ Oyen mayor said in a news release.
 “Palliser Economic Partnership is pleased to be a strategic partner in the Oyen Rail Yard and Logistics Park project. The logistics park will provide a platform that facilitates both short-term and long-term economic benefits for the region,” added Jay Slemp, President & Board Chairman, Palliser Economic Partnership.
Project Background - Oyen Rail Yard and Logistics Park
o Study undertaken by Palliser Economic Partnership to determine if a rail based transportation / logistics opportunity exists in the Oyen / Special Areas / MD of Acadia.
o Initial economic viability of the project is determined to be positive. Based on potential users and annual rail car volume CN Rail requests proponents to provide preliminary concept designs for the rail yard and logistics parks.
o Special Areas and Town of Oyen have committed $2.1 million to initiate rehabilitation and redevelopment of the Oyen Rail Yard and have secured lease lands from CN Rail.
o Private sector commitments in the project will come from the establishment of new operations / facilities which are estimated at $10 million over next three years.
Benefits to Special Areas, Town of Oyen & MD of Acadia
o Oyen Rail Yard (approximately 35 acres) and Logistics Park (120 acres) are economic enablers that will serve to attract industry that is rail focused resulting in the creation of new direct and indirect jobs and local services.
o Positions the region as an intermediate transportation hub in Alberta and Western Canada.
o Future revenue stream(s) for Special Areas and Town of Oyen via property taxes, sale or lease of subdivided lots, and business services for tenants.
o Fits with provincial strategy to create new regional transportation hubs to facilitate goods movement outside the Calgary Edmonton Corridor.
Conclusion-Why Now??
o CN Rail is supportive of the site and proposed project.
o The Project is economically viable and will attract new business and investment.
o Prospective tenants have been identified and these businesses will create new jobs.
o Project will benefit from lower construction costs given current economic conditions.
Potential Tenants
o Frac sand service companies: Rail imports, Outbound truck shipments.
o Pipeline and Tubular companies: Rail imports, Outbound truck shipments.
o Specialty grains and pulse crops: Inbound trucks, Added Value Processing, Outbound Rail Exports.
o Renewable Energy: Wind Turbine and Solar Panel Staging   Rail imports, Outbound truck shipments.
o Crude Oil Trans load:  Inbound trucks; Outbound Rail Exports.
o Module Fabricators:  Inbound process units by Rail; Outbound shipments by truck via Highways 9 and 36 (high load corridor to oil sand regions).

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