The federal and provincial governments have announced a combined investment of $21 million to rehabilitate a 278-kilometre section of rail line between Sault Ste. Marie and Sudbury. 

The funding was announced by federal Transportation Minister Omar Alghabra and Sault Ste. Marie MPP Ross Romano. Combined with contributions from Genesee & Wyoming Canada, which operates the Huron Central Railway Inc., the total investment in the project is $31.5 million.

The funding will support the rehabilitation of key rail infrastructure to improve the usable life of the track and support Huron Central Railway Inc. in providing freight service between Sault Ste. Marie and Sudbury.

This investment will have important benefits for the region, such as increasing carload volumes in commodity sectors, relieving ongoing supply chain congestion, and improving the reliability of rail service in Northern Ontario. Genesee & Wyoming Canada provides commercial freight service for companies like Algoma Steel and Domtar.

“Genesee & Wyoming is proud of the critical role that the Huron Central Railway plays in supporting the Northern Ontario economy,” said company President Rick McLellan. “These essential infrastructure investments from the Government of Canada and the Government of Ontario will ensure that the railway can continue to serve our communities, securing our customers’ access to vital supply chains.”

Back in 2020, the company said it would end its operations on the rail line without government intervention to improve its infrastructure. Those plans were shelved the following year after the federal government announced it would renew funding for its National Trade Corridors Fund, and remove barriers that prevented short-line railways from eligibility.