Huron Central rail line update

NEWS RELEASE

THE CITY OF SAULT STE. MARIE

************************** Huron Central rail line update

SAULT STE. MARIE - (July 30) - The Working Committee, established to save the Huron Central rail line between Sault Ste. Marie and Sudbury, is pleased to announce that Huron Central Railway has responded favourably to a request made at a meeting held in Montreal on July 22, 2009.

Attendees included representatives of Essar Steel Algoma, Domtar and other industries, as well as Joe Fratesi, CAO of the City of Sault Ste. Marie, representing communities from Sault Ste. Marie to Sudbury.

The City of Sault Ste. Marie invited stakeholders to a meeting on July 14, 2009 to establish a working committee.

Joe Fratesi was appointed chair of the committee, whose first objective was to explore a possible short-term arrangement with Huron Central Railway to prevent the imminent closure of the rail line.

This would allow all stakeholders time to develop a long-term strategy for viability.

The Working Committee is glad to receive from Huron Central a proposal, which, if accepted, would allow Huron Central to continue to operate for a period of up to one year.

The proposal would involve support and contributions from both senior levels of government and other stakeholders, including industry and the affected communities.

As the proposal significantly alters the previous arrangement between the parties, a comprehensive analysis by the participants will be required.

The Working Committee will be scheduling further meetings next week to review and discuss the proposal.

It is hoped that the parties will be able to commit and secure all of the necessary support required to avoid the closure deadlines.

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