The Canadian Government is set to provide $5.3m in funding over the next three years for continued operation of the passenger rail service between Sault Ste. Marie and Hearst, Ontario.
Sault Ste. Marie MP Bryan Hayes announced this new investment on behalf of transport minister Lisa Raitt.
As part of this development, the city of Sault Ste. Marie will receive federal support to establish a new regime of passenger rail service in the area.
Bryan Hayes said: "We thank the Algoma Central Railway Passenger Service Stakeholder Working Group for their extensive study, as this funding will give the City time to put in place a long-term solution for passenger rail service in the area."
This new project will allow the proposed operator, Railmark, to show its ability to deliver on its business plan.
Since 1977, the government has provided financial support to ensure the continued operation of the passenger rail service.
Sault Ste Marie and Hearst come under the Regional and Remote Passenger Rail Services Class Contribution programme, which is focused on remote rail services that offer access to established, year-round communities with few or no other transportation options.