Feds, province commit $30 million to short line railway

Ottawa has come through with some much-needed cash for track improvements to keep the Huron Central Railway rolling.

Sault Ste. Marie MP Tony Martin has confirmed from federal Transportation Minister John Baird that $15 million earmarked for the northeastern Ontario short line 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 honour 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 $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-kilometre-long 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 honour 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 $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.