No. H 025/08
For release - February 1, 2008
SIGNING OF THE CANADA-QUEBEC AGREEMENT ON THE RESTORATION OF THE MATAPEDIA AND GULF RAILWAY
RIMOUSKI, QUEBEC – The Governments of Canada and Quebec are pleased to announce the signing of the Canada-Quebec Agreement in support of the project to restore the Matapedia and Gulf Railway (MGR), evaluated at $14.6 million.
The Honourable Lawrence Cannon, Minister of Transport, Infrastructure and Communities; Ms. Nathalie Normandeau, Deputy Premier of Quebec, Minister of Municipal Affairs and Regions and Minister responsible for the Gaspésie-Iles-de-la-Madeleine Region; and Mr. Claude Béchard, Minister of Natural Resources and Wildlife and Minister responsible for the Bas-Saint-Laurent, Côte-Nord and Saguenay-Lac-Saint-Jean Regions, today announced that this agreement represents more than $9.7 million from the Governments of Canada and Quebec.
"The restoration of shortline railways will generate socio-economic benefits for the regions of Quebec," said Minister Cannon. "This project will provide support to the industries and businesses that use the railway network and will increase the efficiency of the trade corridors in these regions."
"Through these investments, we will be consolidating our railway network, which offers a viable option for the transportation of people and freight as well as an inter-regional link that will help us face the future with greater confidence," said Minister Normandeau.
"In taking this action, the Government of Quebec has shown its willingness to support economic development in this region, within a perspective of sustainable development," added Minister Béchard.
The Government of Canada will invest more than $5.8 million and the Government of Quebec more than $3.8 million over a period of five years in order to support this project, as part of the Canada-Quebec Agreement on the Restoration of Shortline Infrastructure in Quebec. This ambitious program, to which the shortline railways will also be contributing, will generate global investments of more than $75 million over a period of five years. Its purpose is to maintain an efficient railway transport network that is competitive and better integrated with the continental railway network, notably in the principal trade and transportation corridors.
The work will consist of an upgrade to North American standards for the carrying capacity of the MGR's tracks. Shippers dealing with the MGR would like to see improvements in its infrastructures, so that larger-capacity cars can move more efficiently. The work will cover a distance of 347 kilometres and will improve the condition and functionality of the railway.
The shortlines provide regional railway service, and for local businesses they are essential for trade. These companies run more than 38 per cent of the Quebec railway network, that is, more than 2,300 kilometres of railway. In Quebec, more than 80 per cent of the products shipped over the shortlines are destined for the United States. The merchandise shipped over these regional railroads is mainly wood, paper, pulp, particle board, ore and aluminum. Shortlines thus play an indispensable role in the Quebec economy.
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Contacts:
Karine White
Press Secretary Office of the Minister of Transport,
Infrastructure and Communities and Minister responsible for Quebec
613-991-0700
Jonathan Trudeau
Press Secretary
Office of the Deputy Premier, Minister of Municipal Affairs and Regions and Minister responsible for the Gaspésie-Iles-de-la-Madeleine Region
418-691-2050
Media Relations
Transport Canada, Ottawa
613-993-0055
Danielle Pelletier
Communications Advisor
Bas-St-Laurent and Côte-Nord
Office of Minister Claude Béchard
418-492-7730
Jean Armand
Communications Advisor
Ministère des Transports du Québec
418-644-1520, ext. 2567
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