Cash infusion to keep rail freight flowing in Northern Ontario

The federal government is making an investment of up to $10.5 million under the National Trade Corridors Fund to the Huron Central Railway Inc with up to $10.5 million more from the Government of Ontario. Combined with contributions from the railway, the total investment in the project is $31.5 million.

The funding will support the rehabilitation of key rail infrastructure to improve the usable life of the track and support Huron Central Railway Inc.’s freight service between Sault Ste. Marie and Sudbury.

This investment will have important benefits for the region, such as increasing carload volumes in commodity sectors, relieving ongoing supply chain congestion, and improving the reliability of rail service in Northern Ontario, Transport Canada said in a release.

The Huron Central Railway is owned by Genesee & Wyoming railway. It acquired the 173-mile shortline in 1997.

It interchanges with CN in Sault Ste. Marie, Ontario, and with CP in Sudbury, Ontario. It also connects in Sudbury with the Genesee & Wyoming-owned Ottawa Valley railway.

“The rail corridor between Sault Ste. Marie and Sudbury is a vital supply chain link for many local businesses. I am glad to see the work of many has paid off, protecting the jobs at Huron Central Railway and other local business that depend on this important piece of infrastructure in Northern Ontario,” said Ross Romano, member of provincial parliament for Sault Ste. Marie.

A total of $4.7 billion over 11 years (2017-2028) has been allocated to the National Trade Corridors Fund program.