No. H 194/08
For release - August 27, 2008
OTTAWA - Keewatin Railway Company will proceed with capital improvements to the passenger rail service between The Pas and Pukatawagan, Manitoba, thanks to an $2.8 million investment by the Government of Canada announced today by the Honourable Vic Toews, President of the Treasury Board, on behalf of the Honourable Lawrence Cannon, Minister of Transport, Infrastructure and Communities.
The federal investment will fund railway track rehabilitation, bridge re-decking and the purchase of railway equipment.
"Today's announcement supports commitments made by the Government of Canada towards the well-being of regional and rural communities," said Minister Toews. "Rail service improvements also support economic activities in the lumber, hydro-electric, prospecting, trapping and fishing sectors."
"Our government is proud to continue its support for this important service for people living and traveling to and from these remote communities," said Minister Cannon. "This investment will allow Keewatin Railway Company to upgrade the rail line to better support safe and effective rail services."
Keewatin Railway Company – jointly owned by three Manitoba First Nations (War Lake First Nation, Tataskweyak Cree Nation and Mathias Colomb Cree Nation) – operates passenger rail and freight service between The Pas and Pukatawagan in northern Manitoba. It became one of the first First Nations companies to own and operate a railway in Canada when it acquired, in April 2006, the Sherridon Subdivision through an asset purchase agreement with the Hudson Bay Railway Company (HBR). In 2007, Keewatin transported 5,437 passengers and it currently employs 10 full-time and 16 seasonal employees, mostly from First Nations.
"Keewatin Railway Company welcomes this announcement by the Government of Canada and appreciates the ongoing support it has received since the acquisition of the line from Hudson Bay Railway Company," said Anthony Mayham, Chief Financial Officer of Keewatin Railway Company. "With this funding, Keewatin Railway Company will be able to control all the capital and operational track maintenance by acquiring equipment to do this work."
While there is limited air and winter road service to Pukatawagan, most of the travel to the reserve is by rail. Trains also carry essential food, heating and building supplies, and household goods to the area, and support forestry, hunting and fishing activities.
Since 2005, the Government of Canada has demonstrated its commitment to this rail service by providing over $8 million in start-up and capital funding to Keewatin Railway Company. The funding has been invested in the acquisition of the rail line, the recruitment and training of employees, the purchase of locomotives, railway equipment and vehicles, as well as infrastructure upgrades to the 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 certain 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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