Huron Central Railway in Ontario May Cease Service in 2020 Due to No Government Funding for Rail Improvements

The railway is still in need of about $40 million in capital investment over five years to rehabilitate the line and sustain its safe operation. If the capital is not received, Huron Central will begin a wind down of its operations.

The following is an excerpt from a story published on The Sault Star's website on Oct. 7.

Oct. 10, 2019 - Huron Central Railway says it will cease operations in early 2020 because it hasn't received the financial support from the federal or provincial governments to make necessary improvements to the rail line.

Algoma Steel, Domtar and Eacom, are the three largest users of the freight service.

“For the last few years, we have worked diligently with elected officials in Toronto and Ottawa and a dedicated team of local leaders to develop a long-term strategy to sustain HCRY,” said Louis Gravel, GWCI president. “While both the provincial and federal governments made commitments to support our long-term plan, the only recent funding received has been a modest investment from the province to temporarily sustain operations.”

He said that money allowed for the completion of minimum levels of emergency repairs needed to sustain the safe operation of the line.

But the railway is still in need of about $40 million in capital investment over five years to rehabilitate the line and sustain its safe operation, he said in a press release.

If the capital is not received, Huron Central will begin a wind down of its operations, leaving industry without rail transportation to access its supply chains and bring products to market.

HCRY's plan included a cost-sharing model between the railway and both levels of government, but the money has not been forthcoming.

“We will continue to work with the governments of Ontario and Canada, should they be prepared to fulfill their commitments to preserve this vital regional strategic asset. While they recently announced substantial investments to help some of HCRY's main customers, the railway that supports their supply chains and access to global marks hangs in the balance,” the release says.

Editor's note: The Huron Central Railway was founded by Genesee & Wyoming in July 1997 to operate a 173-mile (278 km) route leased from the Canadian Pacific Railway (CPR) between Sudbury and Sault Ste. Marie, Ontario, Canada. HCR's primary freight includes: Chemicals, Forest Products, Petroleum Products, Pulp and Paper, Steel and Scrap.