The province is providing $48,000 to two rural, farmer-owned railway companies that are considering purchasing local, short-line rail lines.

Agriculture, Food and Rural Initiatives Minister Stan Struthers said this morning that the province will provide funds to the River Hills Railroad Inc.. and the Lake Line Railway Company Ltd. to complete feasibility studies for purchasing and operating short-line railways.

"Purchasing and operating smaller branch lines is an innovative solution in many of Manitoba's rural areas and we are pleased to partner with these companies to help them with the first step in moving their goal of rail-line ownership forward," Struthers said in a prepared statement.

The province is providing $25,000 to River Hills Railroad and $23,000 to Lake Line, to cover 50 per cent of the cost of each feasibility study.

River Hills Railroad was incorporated in 2009 with about 100 shareholders, many who are grain producers. River Hills is researching the purchase of 102 kilometres of the CP Rail line from Nesbitt to Rathwell.

Lake Line Railway was also established in 2009, by six individuals, also grain producers. It's studying the purchase of 60 kilometres of the CP Rail line from Selkirk to Gimli.