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Rail News Home Passenger Rail

5/24/2004



Rail News: Passenger Rail

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.


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