End of the line for Soo-Hearst passenger rail? Rail supporters reboot search for third-party operator.

AuthorKelly, Lindsay
PositionSAULT STE. MARIE

It's back to the drawing board for stakeholders hoping to preserve the Algoma Central Railway (ACR) passenger line that runs between Sault Ste. Marie and Hearst.

A request for proposals issued in August garnered three potential operators, but after their proposals were reviewed and credentials assessed, CN Rail, which owns the line, determined none was suitable for the task, said Tom Dodds, chief executive officer of the Sault Ste. Marie Economic Development Corp.

It was the second request for proposals (RFP) issued to find an operator.

Michigan-based Railmark Holdings, which was selected by CN after the first RFP was issued in September, 2014, was ultimately dismissed when it couldn't provide proof of sufficient working capital and had difficulty meeting its obligations to CN.

CN then cancelled the passenger service last July, impacting the busy tourism season for lodge and cottage owners along the route. CN has, however, agreed to maintain the Agawa Canyon Tour Train, which runs daily excursions to view the canyon's array of autumn colours every fall.

After an annual federal subsidy of $2.2 million was revoked in 2014, it looked like the ACR line would fold indefinitely. But lobbying by a group of stakeholders that included the City of Sault Ste. Marie, cottagers, lodge owners, First Nations, and transportation advocates was successful in getting a reprieve.

Last March, the federal government promised $5 million over three years--if the working group could secure an owner and operator that satisfied the criteria set out by CN and Transport Canada.

Following this most recent RFP, the first two proponents were rebuffed after they didn't meet CN's criteria, Dodds noted, while a third proponent expressed interest, but wanted to operate the train only.

"Our sense of those people are they're really looking for somebody that's in the region, in the community, that they can partner with," Dodds said. "They're interested in perhaps operating, but they're not interested in owning that train."

But CN has made it clear it's not interested in the passenger service at all, Dodds noted.

Two similar types of operations exist in other regions of Canada, but both have Aboriginal ownership: Tshiuetin Rail Transportation operates out of Quebec, while Keewatin Railway Company is based out of Manitoba.

It's a business model the working group hasn't ruled out, and on March 7, the Coalition for Algoma Passenger Trains (CAPT) indicated it was working on a "very...

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