The freight rail service between Sault Ste. Marie and Sudbury will continue to operate.
Genesee & Wyoming Canada, the owner of the 278-kilometre spur line, says their plan to terminate service is now suspended as negotiations continue to provide support funding for infrastructure upgrades.
In a press release, the company says it has received confirmation short line railways will now be eligible to access funding from the National Trade Corridors Fund, delivered through Transport Canada, a funding program that had been previously denied to them.
Just before Christmas the company extended its December 18th deadline to withdraw its services adding it needs a $40-million subsidy to upgrade the line.
The company says while 43 railway jobs are directly affected by the negotiations, its board also realizes the line has a significant effect on raw and finished product transportation for Algoma Steel in Sault Ste. Marie, EACOM in Nairn Centre and the Domtar Mill in Espanola.
The negotiations are continuing.
