CN announces partnership for new rail yard in Oyen

Work will begin on a new transload and rail logistics park in Oyen this fall after Canadian National Railway and a local drilling company have given initial support to the plan.

The Oyen Rail Yard is a joint project of the town — located 190 kilometres north of Medicine Hat — the Special Areas Board and the Palliser Economic Partnership, a consortium of municipalities in Alberta’s southeast.

Initial work will include some upgrade of the rail that runs north of the town at a proposed 155-acre logistics park on the CN line that runs from Saskatoon.

A drilling sand terminal will become the first tenant, owned by Iron Horse Energy Services, which is based in Medicine Hat and operates an office in Kindersley, Sask.

From Oyen — about halfway between the two centres — the drilling company will dispatch material for eastern Alberta and western Saskatchewan.

“(We) look forward to developing a long-term partnership with Oyen and surrounding areas,” stated Iron Horse VP Todd Garman, in a release.

Elected officials say the first phase will cost $2.1 million, but future work could include a laydown area for pipe and windmill components.

Eventually it could have a capacity of 2,500 rail cars to haul construction material, equipment or specialty agriculture products.

“This project will create jobs, both direct and indirect, and will support future development to help maintain Oyen as an attractive place to do business,” said Oyen Mayor Doug Jones.