The parent company that owns the Huron Central Railway is planning to shut down the spur, which could be a major concern for three major businesses that utilize the line along the North Shore corridor.
According to The Moose, Genesee & Wyoming Canada owns the line between Sudbury and Sault Ste. Marie commonly known as the Huron Central Railway.
Company president, Louis Gravel, says they are not getting the financial support they need from governments to continue operating, so they will be shutting down the line in 2020.
He says the railway needs some $40 million dollars over the next five years to be able to rehabilitate and maintain safe operation of the line.
Gravel adds the freight volumes do not provide the economic rationale for the company to make that investment on their own, so they have made what he calls the ‘difficult’ decision to cease service early next year.
He says they will continue to work with both the Ontario and Canadian governments should they be prepared to fulfill their commitments to preserve the line.
Over the last few years, both levels of government have provided funding to keep it operational, since it is vital for operations at Essar Steel Algoma in Sault Ste. Marie, Domtar in Espanola and EACOM in Nairn Centre.
PHOTO: The Huron Central Railway, which provides rail services between Sudbury and Espanola is to be shut down, which could have major impact on three key businesses along the North Shore corridor. Photo supplied by HCR