The federal government is pumping over 12.4-million-dollars into two shortline railway projects in western Saskatchewan.

The federal funds will cover about half the cost of Great Sandhills Railway projects planned for Unity and Leader.

The CEO of the Great Sandhills Railway and president of the Western Canadian Short Line Railway association, Perry Pellerin, says private investors will cover the other 12-million-dollars in costs.

He says the federal funds are welcome and will be used for track improvement to improve access to offshore markets.

Pellerin says the 14 short-line railways in Saskatchewan are important for improving access to foreign markets for farm and energy products.

He adds these improvements also make shortline railways an appealing location for further investment by businesses currently built on short lines and potential new customers.