With a temporary service agreement set to expire at month's end, Ottawa finally came to the table with much-needed money to upgrade a railroad between Sault Ste. Marie and Sudbury.
The money will be tacked onto a matching contribution from the Ontario government that will allow Montreal-based Huron Central Railway to continue providing service to Essar Steel Algoma and Domtar.
Dean Del Mastro, member of Parliament for Peterborough, announced today on behalf of the Honourable Chuck Strahl, Minister of Transport, Infrastructure and Communities that the Government of Canada will set aside funding for up to 45 per cent of the total eligible project costs, to a maximum federal contribution of $15 million for rehabilitation and improvements to the Huron Central Railway, which are estimated to cost approximately $33 million. The Government of Ontario has also allocated $15 million for this project in its 2010 budget. Federal funding for this investment will come from the Building Canada plan.
“The Government of Canada is committed to making important investments in projects across Ontario, such as this vital rail link serving businesses that make significant contributions to our economy,” said Del Mastro.
“The provincial government understands that Huron Central Railway is essential to retaining and expanding present day business operations in Northeastern Ontario, which is why we took the lead and committed $15 million to this project six months ago in the Ontario budget,” said David Orazietti, MPP for Sault Ste. Marie.
Huron Central Railway president Mario Brault stated: “We are pleased and excited with this announcement today. I am extremely proud of the confidence this government puts in our company and I am very happy for employees and for the communities that we serve. We also commend the efforts of the City of Sault Ste. Marie and our major customers and particularly Essar Steel Algoma and Domtar who worked very hard to make this outcome possible.”
“The services of HCR are critical and essential to Essar Steel Algoma delivering its products to market in a timely and cost effective manner,” added Armando Plastino, CEO of Essar Steel Algoma. “We are pleased to have partnered with all the relevant stakeholders and with HCR in arriving at a permanent solution to the difficult economics facing the rail line. With today’s federal government announcement, all the pieces required to ensure a permanent solution are in place and we can look forward with certainty to an ongoing and mutually beneficial business relationship with the rail company.”
Michel Jean, Vice-President of Logistics and Production Planning at Domtar said, “We appreciate this support which will contribute to the improvement of the rail infrastructure so we can safely transport products and meet our customers’ needs. This is great news for our Espanola mill, our employees and the community.”
