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.