No. H 083/09
For release - June 5, 2009
OTTAWA — Canada's Transport Minister, John Baird, announced today $5.8 million in federal funding to the Tshiuetin Rail Transportation – a passenger and freight rail company owned and operated by three First Nations communities – for capital improvements to improve the rail line and the passenger rail service between Sept-Îles and Schefferville.
"The Government of Canada, under the leadership of Stephen Harper, is committed to helping support this important service for the people of Western Labrador, Schefferville and surrounding areas which will help sustain economic activities such as re-supply, recreation and tourism," said Minister Baird. "Our government's investment in this rail service is a good example of what we are doing to create jobs and make a difference in the lives of the peoples living in these remote communities."
"We are very pleased to have received this money and even more pleased to see the positive results that were, and will be, created by it," said Tommy Vollant, the Tshiuetin board of directors President. "This money will go a great distance into providing our Northern communities with a safe and much more reliable mode of transportation while creating more jobs that will stimulate our economy."
Of the total $5.8 million funding, $2 million comes from existing capital funding and $3.8 million comes from funding under the Economic Action Plan made available in Budget 2009.
The projects funded under the Economic Action Plan will include track replacements and repairs, the construction of two sheds and a turning track, improvements to electrical and telecommunications systems, and the acquisition of maintenance equipment. It is expected that Tshiuetin Rail Transportation will spend $2.3 million on these stimulus projects in 2009-2010 and $1.5 million in 2010-2011. The remaining $2 million will be used to purchase two service vehicles and safety equipment, update the passenger cars, as well as replace railway ties, rails and culverts in 2009.
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.
To learn more about Canada's Economic Action Plan, visit www.actionplan.gc.ca.
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