Blind River pulls pin on support for Huron Central funding bid

It’s the end of the line on support by Blind River council for Huron Central Railway’s bid to secure some $42 million in government funding.

Huron Central is owned by the Genesee and Wyoming Company of Canada, which is seeking provincial and federal funding to operate the 283-kilometre rail corridor between Sault Ste. Marie and Sudbury. The money would be used for ongoing maintenance and upgrades to the line.

Huron Central ships goods from three northern Ontario companies – Domtar, Algoma Steel and Eacom. It has been seeking support from local municipalities along the line, including Blind River, to strengthen its funding bid.

Sault Ste. Marie council has already given its support to the bid after Huron Central notified the city that without the funding it would cease operation by the end of the year. In May, council approved a resolution supporting the company’s funding bid.

The rail service received some $33 million in federal and provincial funding in 2009 also needed to keep it operating, citing insufficient freight volumes to generate revenue needed to maintain and rehabilitate the line. The federal-provincial money was given at the time.

In a letter from Huron Central, the company states continued operation of the rail line helps reduce truck traffic on northern roadways and is environmentally friendly.

“HCRY contributes to maintaining road conditions by reducing trucking transportation in the area. Without HCRY, we could see an increase of up to 40,000 trucks annually on the regional highway – which are public infrastructure financed by different levels of government – in the end, by taxpayers,” the company stated.

Funding would also preserve some 43 direct jobs and several thousand indirect jobs, the company claims.

Councillor Clifford Spratt said he was concerned about a company always asking government for funding.

“When you’re in business, you’re there to make money,” he said. “If you’re not… then you move on.”

He said the company should have spent time finding new customers to use its service and generate revenue.

Councillor Ken Kennedy agreed that more should have been done to secure new customers.

Councillor Jim Dunbar said he could support the company’s bid over concerns about increased truck traffic in the area. The councillor said he noted in trips across the country that the stretch of Highway 17 from Ottawa to Dryden is about “the worst.”

At Monday’s meeting, councillors Steven Wells and HP Roy were absent. In a recorded vote on the issue, Wells and Councillor Paula Summers voted in favour of the bid. Councillor Kennedy and Spratt voted against, with Mayor Sue Jensen also voting against to break the deadlock.