Algoma Central Railway gets funding extension

For the eighth consecutive year, Transport Canada has announced special funding allowing Algoma Central Railway to continue its passenger service to Hearst.

The funding, for $2.1 million this year, will support the carrying of passengers, employees and supplies to remote lodges and wilderness tour points, some of which are accessible only by rail.

Last year, ACR carried approximately 11,000 passengers.

The following is the full text of a news release issued today:

**************************************************************** Government of Canada announces funding to continue Northern Ontario passenger rail service

OTTAWA, ONTARIO - Transport Minister David Collenette today announced that the Government of Canada has agreed with Canadian National (CN) to extend its funding agreement with the Algoma Central Railway Inc. to continue passenger rail service between Sault Ste. Marie and Hearst, Ontario, until June 30, 2004.

The funding totals $2.1 million and took effect July 1, 2003.

"Passenger rail service is important to the northern Ontario communities served by this rail line," said Mr. Collenette. "This funding will help keep the service running year-round."

The service supports the regional economy by carrying customers, employees and supplies to remote commercial lodges and wilderness tour points, some of which can only be accessed by rail.

Algoma Central served about 11,000 passengers in 2002.

For the past seven years, Transport Canada has provided funding to Algoma Central to ensure the continued operation of passenger rail services.

In September 2001, CN completed the purchase of Algoma Central's parent company, the Wisconsin Central.

Until 1996, service between Sault Ste. Marie and Hearst was subsidized by the former National Transportation Agency, now the Canadian Transportation Agency.

Transport Canada assumed funding responsibility from the National Transportation Agency when the Canada Transportation Act ended the agency's ability to continue subsidizing the service.

Federal funding for this initiative is built into the existing financial framework.

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