Feds provide funding to save Algoma passenger train.

• Position: NEWS

The federal government will provide $5.3 million over three years so the Algoma Central Rail (ACR) passenger service between Sault Ste. Marie and Hearst can continue.

The announcement was made on April 1. CN, the current operator of the train, said it would cease offering the service as of April 1, after Transport Canada announced last year it would no longer provide the subsidy to keep it going.

According to a government news release, the City of Sault Ste. Marie will receive federal support for three years for the continued operation of the passenger rail service.

This would allow Railmark, the proposed operator, to demonstrate its ability to deliver on its business plan. A review will be carried out at the three-year mark to determine if additional funding is warranted.

"The Harper government is pleased to provide funding over the next three years to maintain operation of the passenger rail service between Sault Ste. Marie and Hearst," Sault MP Bryan Hayes said in the release. "We thank the Central Railway Passenger Service Stakeholder Working Group for their extensive study, as this funding will give the city time to put in place a long-term solution for passenger rail service in the area."

Comprised of area stakeholders and led by the Sault's Economic...