No. H 028/08
For release - February 1, 2008
SIGNING OF THE CANADA-QUEBEC AGREEMENT ON THE RESTORATION OF THE ST. LAWRENCE AND ATLANTIC RAILROAD AND THE MONTREAL, MAINE AND ATLANTIC RAILROAD
SHERBROOKE, 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 St. Lawrence and Atlantic Railroad (SL&A) and the Montreal, Maine and Atlantic Railroad (MMA), evaluated at more than $22.8 million.
The Honourable Michael M Fortier, Minister of Public Works and Government Services Canada, and Minister responsible for the Montreal Region, on behalf of the Honourable Lawrence Cannon, Minister of Transport, Infrastructure and Communities; Ms. Monique Gagnon-Tremblay, Quebec Minister of International Relations, Minister responsible for the Francophonie and Minister responsible for the Estrie Region; as well as Mr. Jean Marc Fournier, Quebec Minister of Revenue, Minister responsible for Parliamentary Reform, Parliamentary Leader for the Government and Minister responsible for the Montérégie Region, today announced that this agreement represents an investment of more than $15.2 million by the Governments of Canada and Quebec.
"The restoration of shortline railways will generate socio-economic benefits for the regions of Quebec," said Minister Fortier. "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 goods, as well as an inter-regional link that will help us face the future with greater confidence," said Minister Gagnon-Tremblay.
"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," said Minister Fournier.
The Government of Canada will invest more than $9.1 million and the Government of Quebec more than $6 million over a period of five years in order to support this project, as part of the Canada-Quebec Agreement for the Restoration of Shortline Infrastructures 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 SL&A, which links Saint-Hyacinth to the American border near Coaticook via Richmond and Sherbrooke, will receive more than $5 million for the completion of a project worth more than
$7.5 million, and the MMA, whose main line extends from Saint-Jean-sur-Richelieu to the American border near Lac Mégantic via Farnham, Magog and Sherbrooke, will be given financial assistance of $10.1 million for a project worth over $15 million.
The work will enable the SL&A to improve the carrying capacity of its rails, in accordance with North American standards, over a distance of 153 kilometres. Within a context of expanding exchanges with continental networks, competition in serving the East Coast is very high. Several current clients of the SL&A have been asking this carrier for a long time to improve its infrastructure in order to provide them with better service.
As for the operators of the MMA, they would like to increase the carrying capacity of the rails, in accordance with North American standards, and implement an extensive tie restoration program. The work will cover a distance of 381 kilometres.
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. - 30 -
Contacts:
Karine White
Press Secretary
Office of the Minister of Transport,
Infrastructure and Communities and Minister responsible for Quebec
613-991-0700
Daniel Desharnais
Political Attaché
Office of the Quebec Minister of Transport
418-643-6980
Media Relations
Transport Canada, Ottawa
613-993-0055
Véronique Milot
Regional Press Secretary
Office of the Minister responsible for the Outaouais Region and MNA for Chapleau
819-246-4558
Jean Armand
Communications Advisor
Ministère des Transports du Québec
418-644-1520, ext. 2567
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