Canada rail line can start upgrading

Agreements between Huron Central Railway and the federal and provincial governments are being finalized, paving the way for infrastructure improvements along the rail line, the Sault Star reports. Sault Ste. Marie CAO Joe Fratesi said Huron Central will sign separate agreements with the federal and provincial governments that will see C$15 million from each level of government flow for the upgrades.

"Huron Central is very
satisfied with the way things are going. They’re comfortable with the process
that was developed and the way things are moving along," Fratesi said.

A conference call was held
last week to review the situation and Fratesi said things are moving forward as
expected.

Mario Brault, president of
Huron Central Railway, said in a telephone interview that he just received a
confirmation letter from the provincial government treasury board and expects a
similar one from the federal government within days.

"The letters confirm
the eligibility dates and, once I receive the one from the federal government,
we can start ordering materials and start the bidding process, even though the
agreements are still not completed," he said. "We’re working in good
faith."

Work on the 300 kilometers
(186 miles) of rail line between Sault Ste. Marie and Sudbury won’t begin until
spring but materials can be ordered, the work planned and the tender process
can begin, Brault said. In the meantime, the operational agreement by Huron
Central Railway remains intact, providing large rail-line users such as Essar
Steel Algoma and Domtar a route to ship their product.

Brault said that in the
meantime, it’s business as usual for the clients the railway serves.

"We’re operating a
slow railroad, but we won’t compromise safety," he said, adding he knows
the slow-moving trains aren’t always in the best interest of his customers.
"We won’t sacrifice in the delivery of a safe operation."

The long-awaited funding
was announced in September, more than one year after stakeholders banded
together in an attempt to save the rail line. The C$30 million of funding,
provided equally from the federal and provincial governments, will keep freight
moving on the short-line rail between Sault Ste. Marie and Sudbury, permitting
major infrastructure improvements that will return Huron Central back to
profitability.

Earlier this year Huron
Central also received C$3 million for immediate repair work. Upgrades will be
carried out over the next four years along different parts of the route, but
the trains will continue to operate during that time. The work will include
rail line, bridge, culvert and anchor work, among other things.

Brault said that customers
or communities wouldn’t see spectacular change overnight.

"A little bit of work
will be done all over the line. It’s not like unrolling a carpet and starting
at one end and finishing at the other," he said.

Brault said communities and
First Nations would be kept abreast of repairs and timelines for that work when
it occurs in their area.

"We are conscious and
acknowledge that everyone in the region is as anxious as we are to start this
work," he said.

Contractors will be hired
through a tender process to do various parts of the project along the line.

This is the first time the
provincial government has put money into rail infrastructure, something that is
usually a federal responsibility.

In 2009, Huron Central had
said it would stop operating the line between the Sault and Sudbury because
major infrastructure improvements were needed to return the short-line railway
to profitability. Major stakeholders and Huron Central Railway struck a
one-year deal that allowed officials time to seek funding for the improvements.

The provincial government
earmarked its share of the funding in its budget and the federal portion was funded
from Building Canada. Large shippers made long-term commitments pertaining to
usage levels and shipping rates, while Huron Central and CP Rail finalized
leasing agreements and sharing rates for the track.

Huron Central, which has
leased the rail line since 1997, says it has lost money over the past four
years, including C$2.1 million in 2008.