The Canadian government has announced an investment of C$43m ($29.85m) over two years into the Remote Passenger Rail Programme, funded by Transport Canada.
This initiative aims to maintain passenger rail services in remote areas where rail is the sole surface transportation option.
The Arctic Gateway Group (AGG) will receive the entirety of the investment to support the annual repairs, maintenance, and operations of the Hudson Bay Railway (HBR).
The HBR serves as a ‘vital’ transportation route in northern Manitoba, transporting ores, concentrates, copper, zinc, logs, kraft paper, lumber, and petroleum products.
Additionally, Via Rail Canada utilises the HBR’s tracks for its passenger service between The Pas and Churchill, a region where many communities lack all-weather road access, and the ice-road network is increasingly vulnerable to climate change.
This funding will ensure continuous access to ‘affordable’ travel, medical services, and essential goods from The Pas to Churchill.
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By GlobalDataThe HBR also serves as a vital link to Canada’s only deep-water Arctic port connected to North America’s surface transportation network. This connection is expected to grow in importance for shipping Canadian goods and commodities globally.
The railway’s capacity to transport critical minerals to international markets was demonstrated last August when the Arctic Gateway Group shipped minerals bound for Europe, according to the Canadian government.
Additionally, the HBR provides an essential link to Nunavut’s Kivalliq region, which is key for resupply operations.
The investment is anticipated to boost local business growth, including job creation and security, and expand opportunities in trade, mining, forestry, and tourism.
The government stated that Churchill, a place known for its tourism appeal, and First Nations communities along the rail line, offer year-round natural and cultural attractions that are increasingly sought after in the global market.
In November 2024, AGG announced major improvements in the quality and efficiency of the HBR. The 2024 construction season set a record for work completed, with ‘substantial’ investments in railway upgrades and preparations for the Port of Churchill redevelopment.
Last month, Alstom signed a C$500m framework agreement with Metrolinx to upgrade bilevel commuter railcars for GO Transit in Ontario’s Greater Golden Horseshoe region.
