The Huron Central Railway, which provides rail services between Sudbury and Sault Ste. Marie is to be shut down, which could have major impact on three key businesses along the North Shore corridor.
Louis Gravel, president of Genesee & Wyoming Canada Incorporated, which owns the rail spur, says they are not getting the financial support they need in maintaining the line.
He says the current state of the railway requires approximately $40 million in capital investment over a five-year period to rehabilitate the line and sustain its safe operation.
Gravel adds freight volumes do not provide an economic rationale for the company to make that investment, so they have made what he calls the difficult decision to cease service on the line in early 2020.
He adds until then, they will continue to work with the governments of Ontario and Canada, should they be prepared to fulfill their commitments to keep the line going.
Over the last few years, both levels of government have provided funding to keep it running, which is vital for operations at EACOM in Nairn Centre, Domtar in Espanola and the steel plant in Sault Ste. Marie.
