(Northern Ontario Business posted the following story on its website on July 17.)
SUDBURY, Ontario — Algoma Central Railway received a $2.1-million federal subsidy to continue passenger rail service in northeastern Ontario.
Federal Transport Minister David Collenette made the announcement July 10, stating that Ottawa is extending the funding agreement with ACR’s parent company, Canadian National, to maintain service between Sault Ste. Marie and Hearst. The funding took effect July 1.
The service supports the regional economy by carrying customers, employees and supplies to remote lodges and wilderness tour points accessible only by rail. In 2002, ACR carried 11,000 passengers.
Transport Canada has provided annual funding for the ACR for the past seven years.
“Passenger rail service is important to the Northern Ontario communities served by this rail line,” said Collenette in a news release. “This funding will help keep the service running year-round. ”
Until 1996, Sault-Heart service was subsidized by the former National Transportation Agency, now the Canadian Transportation Agency. Transport Canada assumed funding responsibility when the Canada Transportation Act ended the agency’s ability to continue subsidizing the service.