No. GC 035/07
For release - December 7, 2007

THE GOVERNMENT OF CANADA AND THE PROVINCE OF SASKATCHEWAN INVEST IN INFRASTRUCTURE

REGINA —The Government of Canada and the Province of Saskatchewan today announced that, as part of the Asia-Pacific Gateway and Corridor Initiative (APGCI), the Government of Canada will contribute up to $27 million to a proposed strategic infrastructure project estimated at $93 million. This project will benefit the local community through improved traffic flow and enhanced transportation safety and security.

The announcement was made by the Honourable Gerry Ritz, Minister of Agriculture and Agri-Food and Minister for the Canadian Wheat Board, on behalf of the Honourable Lawrence Cannon, Minister of Transport, Infrastructure and Communities, in the presence of the Honourable Wayne Elhard, Minister of Saskatchewan Highways and Infrastructure, Mr. Pat Fiacco, mayor of the City of Regina and Mr. Jim Buggs, general manager, port and gateway strategy, for Canadian Pacific.

This infrastructure project consists of building a new Canadian Pacific Railway (CPR) inter-modal facility west of Regina; the upgrading of Pinkie Road connecting to Highways #1 and #11, both National Highway System routes and connects to the City of Regina road network, which will provide direct access for international trade traffic to this facility. The upgraded road and rail grade crossings will also result in the environmental benefits of reduced congestion and fewer vehicle emissions.

"The Government of Canada is working hard to build the Asia-Pacific Gateway and Corridor Initiative," said Minister Ritz. "Today's announcement will create huge economic opportunities in Saskatchewan and across Canada as this multi-modal facility will ensure we can get our products to markets around the world more efficiently."

"Investing in strategic infrastructure benefits our communities and is key to Canada's competitiveness in the rapidly changing world of global commerce," said Minister Cannon. "We are committed to establishing the Gateway and Corridor system as the best link between North America and Asia, and will continue to work with the provinces and stakeholders to make it happen."

"The Regina Region Inter-Modal project will enhance rail transportation efficiency in the Regina region, particularly with regard to the movement of in-and-out bound containers. It will also provide the transportation infrastructure to support future development and growth for the region," said Minister Wayne Elhard.

"The City of Regina is pleased to join in partnership with the provincial and federal governments and Canadian Pacific in support of this exciting project," said Mayor Fiacco. "This is a major priority for the City of Regina that supports our future sustainability and economic development activities within the Regina Capital Region by establishing Regina as a major transportation hub."

"Canadian Pacific is encouraged by this announcement. We will work diligently with the province, the federal government and other stakeholders to make this project a reality," said Mr. Fred Green, president and chief executive officer of Canadian Pacific. "This partnership will foster economic development and enhance transportation efficiency in the Moose Jaw-Regina transportation corridor and the region in general."

The funding announced today is conditional on the project meeting eligibility requirements under the Building Canada Plan, a full federal due diligence review of the project, the successful completion of environmental assessments required by the Canadian Environmental Assessment Act and the successful negotiation of a contribution agreement with project sponsors.

Through its unprecedented $33-billion Building Canada infrastructure plan, the Government of Canada will provide long-term, stable and predictable funding to help meet infrastructure needs across Canada. Building Canada will support a stronger, safer and better country. Over the past year, the Government of Canada met with provinces, territories and the municipal sector to discuss the Building Canada Plan with a view to signing agreements and beginning to fund initiatives under the plan.

For more information about Canada's APGCI, please visit www.apgci.gc.ca, and for more information on the Building Canada Plan, please visit www.buildingcanada.gc.ca.

- 30 -

Transport Canada is online at www.tc.gc.ca. Subscribe to news releases and speeches at www.tc.gc.ca/listserv/ and keep up-to-date on the latest from Transport Canada.

This news release may be made available in alternative formats for persons with visual disabilities.

BACKGROUNDER

BUILDING CANADA — THE GOVERNMENT OF CANADA AND THE PROVINCE OF SASKATCHEWAN INVEST IN INFRASTRUCTURE

The Regina region inter-modal project has both short- and long-term goals. It will address immediate rail capacity issues while strategically building the related road infrastructure to support expanding international trade movements. These improvements will increase the productivity of the supply chain across Western Canada to the Asia-Pacific region. The current inter-modal facility, which is located in downtown Regina, is nearing capacity. Upgrading road/rail grade crossings will reduce vehicle traffic delays currently experienced in downtown Regina.

The Asia-Pacific Gateway and Corridor Initiative (APGCI) is a national initiative that will contribute to Canada’s economic competitiveness, while also benefiting communities through which increasing volumes of trade must move. During its first year, APGCI projects valued at more than $2.3 billion were announced across all four western provinces. This includes contributions of over $850 million from the federal government.

December 2007