Everybody agrees - Huron Central is worth fighting for!

NEWS RELEASE

CITY OF SAULT STE. MARIE

************************* Industry and community leaders meet to address proposed rail line closure

SAULT STE. MARIE, ON - Key stakeholders met in Sault Ste. Marie City Council chambers on July 14 to develop a plan to retain Huron Central rail line operations between Sault Ste. Marie and Sudbury.

In mid-June, Huron Central Railway announced that it would terminate its lease with Canadian Pacific for operation of the rail line between Sudbury and Sault Ste. Marie, terminating service between Sault Ste. Marie and Espanola by August 15, with the portion between Espanola and Sudbury being terminated on October 31.

CP has stated that it has no interest in operating the rail line and unless another operator or purchaser comes forward it intends to permanently close the line.

This decision has caused consternation and alarm among the industries and communities that are dependent on the rail line to maintain viability and enhance future growth.

The group that met on July 14 included representatives from affected industries, municipalities, First Nations, federal and provincial representatives, as well as staff from FedNor and the Ontario Ministry of Northern Development, Mines and Forestry.

Participants unanimously agreed that the rail line must not be allowed to close – that the loss of the line would be extremely short-sighted, resulting in deep and lasting negative impacts on Northern Ontario’s industrial base, particularly steel, forestry/paper and mining, and the businesses that support those operations.

The economic and social costs for communities along the North Shore are significant.

Not only would elimination of the rail line result in direct and indirect job losses, the effects of increased truck traffic on Highway 17 would be considerable.

Essar Steel Algoma alone estimates that, at current production levels, 18,000 trucks would be required to replace rail transport.

Given current expansion plans at Essar, this is expected to grow to 40,000 in the near future.

Additional truck traffic will result in increased emissions; deteriorating infrastructure; a reduction in tourist traffic; an increase in the potential for motor vehicle accidents; and the loss of transportation competition.

Increased transportation costs will have to be absorbed by industry and will inevitably result in increased product costs.

Many small businesses that currently depend on the rail line may no longer be viable if forced to use alternate transportation methods.

“The rail line between Sault Ste. Marie and Sudbury is essential to the economic and environmental stability and growth of Northern Ontario,” says Sault Ste. Marie’s Chief Administrative Officer, Joe Fratesi. “It is also a key component of the City's multi-modal plan to develop a major reload and distribution centre”

A working committee of representatives from major industries, chaired by Fratesi will continue to meet to identify and implement next steps required to retain the rail line.

*************************