Canada, province commit C$30 million to shortline railway

February 14, 2001 Ottawa has come through with some much-needed cash for track improvements to keep the Huron Central Railway rolling, Northern Ontario Business reports. Sault Ste. Marie MP Tony Martin has confirmed from federal Transportation Minister John Baird that $15 million earmarked for the northeastern Ontario shortline railway is on its way.

For the second
consecutive year, communities along the North Shore of Lake Huron and
industrial shippers such as Essar Steel Algoma and Domtar were facing a looming
Aug. 15 deadline to keep the railroad open.

"I was told (Aug. 5) by
phone (that) the federal government will honor its commitment, they are aware
of the August 15 deadline for the expiry of the current agreement and that the
details are being worked out," said Martin in a news release.

Ottawa’s funding
commitment releases a matching C$15 million previously set aside by the Ontario
government for the Huron Central to make repairs and upgrades to track beds and
bridges along the 305-kilometer-long  (195-mile) Sault Ste. Marie-to-Sudbury line.

"The only really
complicated issue here has been getting Ottawa and Ontario on the same page at
the same time and I congratulate the federal government for making this good
investment," said Martin.

Area municipalities,
alongside Martin and his New Democrat colleagues Carol Hughes, MP for
Algoma-Manitoulin-Kapuskasing and Sudbury MP Glenn Thibeault, had been pressing
Baird to honor his earlier funding promise.

Hughes said having a
viable short line railway in place keeps extra transport trucks off the
Trans-Canada Highway.

"Businesses can breathe a
sigh of relief and equally as important communities can be reassured that our
roads won’t be subjected to more transports which would have increased the risk
of accidents."

Last year, Ottawa and
Queen’s Park teamed up to funnel C$3 million as a stop-gap measure to the Huron
Central after the Montreal-based carrier announced it was pulling service from
Sault Ste. Marie and Espanola because of declining freight volumes and deteriorating
track conditions. The railroad agreed to a one-year temporary service agreement,
which included undisclosed commitments from Essar and Domtar.