Political expediency not happening for Huron Central Railway: Rail advocates waiting for government to step up to save short-line freight service.

AuthorRoss, Ian

The timing of the federal election, the lack of dedicated funding for short-line railways, and a regulatory hang-up appear to be stymying a subsidy to the Huron Central Railway

For the third time in 10 years, the Huron Central's parent company, Genesee & Wyoming Canada (G&WC), has threatened to drop freight service between Sault Ste. Marie and Sudbury by early 2020 if Ottawa and Queen's Park don't contribute to a five-year, $40-million package for track maintenance and safety upgrades.

Once again, former Sault mayor and retired CAO Joe Fratesi has had to step into the breach to ensure the critical northeastern Ontario rail line remains intact.

Fratesi is volunteering with another retired Sault mayor and city councillor, Steve Butland, in leading a task force of regional stakeholders to secure funding to keep the freight moving in northeastern Ontario.

To avert a similar stoppage late last year, the Ford government provided emergency funds of close to $1 million to sustain the service for another year while negotiations were to resume toward reaching a long-term funding solution.

"To say we're frustrated and the Huron Central is frustrated would be an understatement," Fratesi said.

Politicians and candidates may publicly support rail when they're on the campaign trail, but he wants them to make good on those promises.

The Huron Central hauls steel, forest products and chemicals for large and small companies like Algoma Steel, Domtar and EACOM.

The company responded by email that they've met several times with federal and provincial government officials over three years to explain the challenges they face.

"At this point, evidently, we've been unsuccessful in convincing both levels of government of investing in the survival of this rail operation for business and citizens of Northern Ontario," the railway said.

The Montreal-based company contends there's "insufficient" revenue generated from that 278-kilometre line to cover track maintenance costs and carry out federally mandated grade crossing regulations without assistance.

G&WC also operates the Ottawa Valley Railway, which runs between Sudbury and Temiscaming, Que., but the company hasn't threatened to discontinue service if there's no subsidy there.

The company responded that it's a shorter line--at 252 kilometres--that needs less capital investment and it provides other sources of revenue in switching and storage.

The breakdown of G&WC's business plan and their cost-sharing model calls...

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