By Carol Martin
SooToday.com
Thursday, June 18, 2009

Rail transportation is very important to the current provincial government, say both Sault MPP David Orazietti and Algoma-Manitoulin MPP Mike Brown.

Brown (shown) who's also parliamentary assistant to the minister of northern development and mines, says it's too early to say what, if any role the province will have in the fate of the rail line from the Sault to Sudbury.

"I have been working with the folks at Canadian Pacific, the Railway Association of Canada, Huron Central President Mario Brault, Randy Marsh and others in the railway association and it is my hope we find a way to keep this open," Brown said. "I believe this to be a critical transportation link in our area."

Algoma-Manitoulin MPP says the link helps to keep heavy traffic off the highway between the Sault and Sudbury, prolonging the life of the roadway and making it safer.

And, it provides a lower-cost alternative in shipping to Essar Steel Algoma and Domtar Inc.'s pulp-and-paper mill in Espanola.

Brown said he's not yet fully aware of the issues surrounding Huron Central's decision to terminate its service lease with Canadian Pacific (CP).

He hopes to work with Huron Central, CP and their customers to see how shipping on the feeder line from Sault Ste. Marie to Sudbury can continue.

"All of the northern members are concerned about this," Orazietti said. "Rail in Northern Ontario and short-line all across Ontario is an important priority."

Earlier this week, Genesse & Wyoming Inc., parent company of Huron Central Rail, announced the company will cease its freight operations from the Sault east to McKerrow by August 15.

Operations from McKerrow to Sudbury will grind to a halt by October 31.

At least 20 jobs in the Sault will be lost and companies such as Essar Steel Algoma will have to find other ways to get their products onto the main CP line at Sudbury.

The rail line from the Sault to Sudbury is a feeder owned by CP and is meant to carry goods from Sault Ste. Marie to CP's main transcontinental line in Sudbury.

That feeder line was on a 20-year lease to Genesee & Wyoming, Huron Central's parent.

According to Northern Ontario Business, that lease would have run out in 2017.

Huron Central has been responsible for the locomotive power, operations management and track maintenance for CP's customers using the feeder line.

In recent days, comments by Sault Mayor Rowswell and MPP David Orazietti have alluded to another company stepping up to take over the line, but so far none have come forward.

"I have been on record several times as encouraging the provincial government to make these investments with industry as well," Orazietti said. "There are larger rail corporations in this country that can make the investments and help to upgrade the rail lines. We want to see the partners at the table as well."

Ontario has been criticized by rail companies, other levels of government and rail advocates for not supporting the industry or protecting the infrastructure enough or to the same extent as other provinces including Quebec.

In May, Huron Central's Brault told a town hall meeting in Spanish that the company would be shutting down its operations on the feeder line unless someone came up with $33 million to upgrade the track.

The following statement was issued today by David Orazietti:

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Orazietti continues to work with provincial ministers of energy and infrastructure and transportation to support short-line rail

SAULT STE. MARIE – David Orazietti, MPP has been working with the provincial ministers of energy and infrastructure and transportation, their staff and local officials for over two years to improve short-line rail infrastructure between Sault Ste. Marie and Sudbury to support local industry.

“We recognize that transporting industrial goods by rail is more efficient for business, has environmental benefits and reduces pressure on our highways,” said Orazietti. “That’s why our government will continue working with the federal government to support improved short-line rail infrastructure in Northern Ontario.”

Orazietti is working to help ensure Ontario is part of a solution for regional rail infrastructure.

The federal government does not currently have a specific program to support short-line rail.

The province and the federal government are working to develop a process to initiate a call for proposals that would allow not-for-profit groups and private sector entities, including short-line rail operators, to apply for stimulus funding.

If successful, the province looks forward to receiving these submissions.

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