No. H 007/08
For release - January 17, 2008
OTTAWA — The Government of Canada is providing Algoma Central Railway with $4.2 million in operating funding, to continue passenger rail service between Sault Ste. Marie and Hearst, Ontario until March 31, 2009. The Honourable Tony Clement, Minister of Health and Minister for the Federal Economic Development Initiative for Northern Ontario (FedNor), made the announcement today on behalf of the Honourable Lawrence Cannon, Minister of Transport, Infrastructure and Communities.
"Algoma Central Railway is an economic and community lifeline in Northern Ontario and our government is proud to support this valuable service," said Minister Clement. "By investing in local infrastructure and transportation, we are investing in the people of Northern Ontario, and that's an investment that always pays dividends."
"Passenger rail services in this region contribute to the economic and social well-being of its communities," said Minister Cannon. "This funding will allow Algoma Central Railway to continue to provide a safe, efficient and comfortable transportation option to local residents and area visitors."
In addition to providing a valuable transportation service to local residents, Algoma Central Railway's Sault Ste. Marie-to-Hearst passenger rail service supports the regional economy by carrying customers, staff and supplies to remote commercial lodges and wilderness tour points, many of which can only be reached by rail. The service transported 7,842 passengers in 2007.
For over a decade, the Government of Canada has demonstrated its commitment to the
Sault Ste. Marie-to-Hearst, Ontario service by providing operating funding of up to $2.1 million per year to Algoma Central Railway, which is a wholly-owned subsidiary of CN. In 2006, the federal government also provided Algoma Central Railway with $1.5 million for the refurbishment of its passenger rail fleet. The revitalized fleet, along with upgrades and modifications, was put into service in April 2007.
"CN welcomes the government's continued support for this passenger rail service," said Michael A. Cory, vice-president of CN's eastern region. "CN, as the passenger service operator and maintainer of the fleet, will do its part to deliver quality service to support the communities serviced by this important Sault Ste. Marie to Hearst rail line."
Federal funding comes from Transport Canada's Regional and Remote Passenger Rail Services Class Contribution Program. The program ensures that safe, reliable, viable and sustainable passenger rail services are provided to areas of the country where these services are either the only means of surface transportation for remote communities, or an alternative means of transportation for rural communities. These services also support economic activities in the lumber, mining, recreation and tourism sectors and provide an essential lifeline for isolated communities.
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Contacts:
Karine White
Press Secretary
Office of the Minister of Transport, Infrastructure and Communities, Ottawa
613-991-0700
Rita Smith
Director of Communications
Office of the Minister of Health and Minister for the Federal Economic Development Initiative for Northern Ontario (FedNor), Ottawa
613-957-4252
Media Relations
Transport Canada, Ottawa
613-993-0055
Frank Binder
Regional Manager - Public and Government Affairs, CN
Concord, Ontario
905-669-3128
Transport Canada is online at www.tc.gc.ca. Subscribe to news releases and speeches at www.tc.gc.ca/listserv/ and keep up-to-date on the latest from Transport Canada.
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