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Rural Canadian towns to receive funds for passenger-rail services


The Government of Canada has created a one-year contribution program to provide $24.4 million for four remote and regional passenger-rail lines.

The program is designed to ensure that rural communities have access to the national transportation network and promote economic activity in isolated communities, according to a prepared statement.

The government will provide funds for passenger services between Toronto and NorthBay, and Sault Ste. Marie and Hearst, Ontario; Sept-lles, Labrador City and Schefferville, Quebec; and The Pas and Pukatawagan, Manitoba.

Transport Canada will provide $20 million; Indian and Northern Affairs Canada, $4.4 million. The funds will be used to support operating, capital and start-up costs for the services.

During the past eight years, Transport Canada has provided funds to operate passenger-rail in communities not served by VIA Rail. Transport Canada currently is seeking to transfer those operations to the private sector or another government.

Contact Progressive Railroading editorial staff.

More News from 5/24/2004