Latest on Huron Central Rail

Key components needed to save Huron Central Rail (HCR) service between Sault Ste. Marie and Sudbury are in place, but the deal is not quite done, says Bill Therriault, chair of the City's multi-modal steering committee.

When key groups that rely on rail service between Sault Ste. Marie and Sudbury started their drive to save that service, there was no provincial program to apply to for infrastructure funding.

Now, because of an initiative born in Sault Ste. Marie City Council chambers, there is.

Therriault told a City Council meeting last night that a critical component of the plan to save the rail line owned by Canadian Pacific (CP), and leased to Huron Central was government funding from all levels of government.

The federal and provincial governments have promised to chip in $30 million of the $33 million needed, in the form of a one-time grant for infrastructure.

It's a move that was unheard of from Ontario but may now be easier for other short-line railways in the province.

Until this case came up, Ontario was the only province in Canada without a provincial/ territorial base fund agreement (PTA) to fund short-line railway infrastructure.

The money's meant to be used to repair and, in some cases, upgrade the track bed between Sudbury and Sault Ste. Marie.

Therriault said that, although a formal deal has not yet been signed, the promise of it is very encouraging.

City Council also heard from multi-modal steering committee member Don Mitchell, who said no other municipal council has ever been as progressive as Sault Ste. Marie in dealing with a rail crisis.

Both Mitchell and Therriault said the efforts of the working committee of stakeholders assembled to save the rail line were intensive and resulted in the inking of a tentative deal on June 17.

Terms for the $30 million one-time infrastructure funding commitment through the federal and provincial governments are not yet finalized but Mitchell is confident it will go through.

"Both governments have provided written assurance that this funding will be forthcoming through the provincial/ territorial base fund agreement (PTA)," said an earlier joint statement from the City and the working group.

Mitchell and Therriault, as well as several City Council members, credited the negotiating skills of City Chief Executive Officer Joe Fratesi as being instrumental in moving both levels of government toward a deal.

They said all members of the working group worked effectively and cooperatively to achieve the same goal.

Fratesi added that the City's potential for growth and development would be very badly affected by a loss of this rail line.

"This deal will affect the whole province as well," Fratesi said.

The HCR's interim agreement to operate the line runs out August 14.

If the final deal is not in place by then, HCR has said it will abandon the line and CP said it will not continue to maintain it unless another operator can be found.