Impossible just takes us a little longer

For Domtar Inc.'s Espanola pulp mill, alternatives to rail transportation are almost unthinkable.

A spur from the rail line goes right into the Domtar property in Espanola and mill Safety and Communication Supervisor Lynne Gibson said the mill uses that line to bring in logs and chemicals and to send out pulp.

She spoke to SooToday.com yesterday after the official kick-off to $33.3 million worth of repairs and upgrades to the Huron Central Rail line running between Sault Ste. Marie and Sudbury.

"The rail line is important and this is a very good time," said Gibson.

It's not just a matter of putting more trucks on the road.

It's a matter of revamping the mill's processes to use trucks instead of rail when there's a rail spur running through the middle of the Espanola Domtar mill's property and it's operations are built around it - literally and productively.

It's also a matter of seeing if the mill can still make money with the added expenses of those adaptations, if it lost access to rail transportation.

There is only one bigger customer on that HCR line - Essar Steel Algoma.

HCR President Mario Brault credits representatives of those two mills with saving the HCR line.

"Essar and Domtar saved this rail line when they sat in my office Montreal in 2009 and brought an agreement," said Brault during the official kick off of about $35 million in repairs and upgrades to the line on Wednesday.

But really, everyone who spoke at yesterday's official kick-off said the historic effort to save the rail line was a partnership effort involving all three levels of government, including chiefs, band councils, mayors, reeves, user groups, Sault Ste. Marie city staff and HC Rail management and workers in all 26 communities served by the company.

Seen in this SooToday.com photo are Algoma MPP Mike Brown, Sault MP Bryan Hayes, Mayor Debbie Amaroso, MPP David Orazietti, Chief Administrative Officer Joe Fratesi and Brault.

It all started in June of 2009, when HCR announced that it would not be renewing its user contract with CN for the section of rail that runs between Sault Ste. Marie and Sudbury.

Shortly after that CP announced that, unless a new company could be found to take over for HCR, it would begin tearing up the line and selling off the property in the fall of 2009.

At that time Brault was asked by media what it would take to make HCR stay and continue to operate freight trains vital to the economies of the communities along the line.

He said it was impossible.

This news galvanized the communities along the track and they banded together to do the impossible.

"Difficult we do right away," said Sault Ste. Marie City Chief Administrative Officer Joe Fratesi, who chaired the working committee that spurred the agreements to ultimately bring about the repair and upgrades of the line necessary to keep it running and make it competitive.

"The impossible just takes us a little bit longer."

Brown added that the upgrades and repairs to the line will also bring an infusion to the area economy over the next four or so years.

He said area people, including First Nations, will be hired or given contracts for the work on the rail.

The full text of a release from the City of Sault Ste. Marie., Province of Ontario, Government of Canada and HCR follows. ****************************** Rehabilitation of the Huron Central Railway begins

SAULT STE. MARIE, ONTARIO — Bryan Hayes, Member of Parliament for Sault Ste. Marie, David Orazietti, Member of Provincial Parliament for Sault Ste. Marie and Mario Brault, President of Huron Central Railway (HCR), today marked the start of construction for the railway rehabilitation of portions of the 288km rail line from Sudbury to Sault Ste. Marie, including a branch from McKerrow to Espanola.

“Our government is pleased to invest up to $15 million in this project from the Building Canada Fund,” said MP Hayes. “Building an efficient transportation system is a priority for our government. Projects such as this one grow the economy by creating jobs, sustaining industries and providing efficient, low-cost rail access to local businesses.”

“The McGuinty government understands that Huron Central Railway is essential to retaining and expanding present day business operations in Northeastern Ontario, which is why we took the lead and committed an additional $15 million to save this rail line, as a priority in Ontario's Budget,” said MPP Orazietti. “The Province’s growth plan is protecting existing jobs and creating new work in a number of diverse sectors that range from this railway line and the local companies it serves, such as Essar Steel Algoma, to renewable energy businesses that are investing in the Sault because of our landmark clean energy programs.”

“I am pleased to be here today and privileged to be part of this exciting and long-awaited announcement regarding the launch of Huron Central Railway’s rehabilitation project,” said

Mr. Brault. “The fact that this event is taking place today is a direct result of the tremendous amount of faith and persistence from all the stakeholders involved.”

“The continuation of operations on this rail corridor between Sault Ste. Marie and Sudbury is essential to Northern Ontario. The collaboration developed to ensure the necessary upgrades occur are a shining example of how a public/private, multi-level governmental partnership can benefit our area,” said Debbie Amaroso, Mayor of Sault Ste. Marie. “Congratulations to all of those who worked so diligently to see this become a reality.”

The capital rehabilitation of the Huron Central Railway will ensure its long-term safety, efficiency and capacity by upgrading it to North-American standards.

The rail line connecting Sudbury to Sault Ste. Marie is a significant component of the transportation network in Northern Ontario.

It provides direct freight rail access to at least 26 communities and First Nations and indirect rail access to numerous other Northeastern Ontario communities.

This investment will offer an opportunity for industrial growth and new jobs and establish the foundation for the expansion of industries and the development of new ones.

Improving this rail line will also ensure long-term environmental benefits by reducing truck traffic as well as long-term safety on the existing line.

The total cost of the project is approximately $33.3 million.

The Government of Canada and the Province of Ontario will each contribute up to $15 million.

The Huron Central Railway will provide the remaining funding. This funding was announced on September 24, 2010. In this period of global economic uncertainty, the Government of Canada continues to take action to stimulate our economy, help create jobs, and have a more prosperous future.

Partnering with businesses and communities in Northern Ontario is part of the McGuinty government's plan to create and support jobs for Ontario families and to strengthen local economies.

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