Photo Courtesy of: soonews.ca

Sault Ste. Marie, Ontario – Many communities, both small and large, as well as local manufacturers and businesses served by the Huron Central Railway can depend on the continuation of rail service between Sault Ste. Marie and Sudbury, Ontario. This is thanks to commitments by the Government of Canada and the Province of Ontario towards essential rehabilitation and capital improvements to the railway line.

Dean Del Mastro, Member of Parliament for Peterborough, on behalf of the Honourable Chuck Strahl, Minister of Transport, Infrastructure and Communities, today announced 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 MP Del Mastro. “This investment will benefit the local economy for years to come, including supporting the expansion of local manufacturers and of communities all along the 288 kilometres of this line.”

“The provincial government understands that Huron Central Railway is essential to retaining and expanding present day business operations in North-eastern 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. “The province’s plan to strengthen northern Ontario’s economy is delivering results by maintaining and creating new jobs in a number of diverse sectors that range from this railway line and the local companies it serves, such as Essar Steel Algoma, to renewable energy businesses that are coming to the Sault because of our landmark green energy programs.”

Mario Brault, President of Huron Central Railway, 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.”

“We are very pleased that the Government of Canada is committing this investment to the Huron Central Railway which is critical to our business,” said Michel Jean, Vice-President of Logistics and Production Planning at Domtar. “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.”

In this period of global economic uncertainty, the Government of Canada has taken action to stimulate our economy, create jobs, and have a more prosperous future by moving forward with a number of large-scale infrastructure programs. Canada’s Economic Action Plan is providing almost $12 billion in infrastructure investments, in addition to accelerating the $33 billion Building Canada infrastructure plan.

Since 2007, the governments of Canada and Ontario have committed more than $13 billion in funding to more than 6,400 infrastructure projects across the province to stimulate the economy and create jobs.