Canada’s Tshiuetin Rail Transportation will receive $5.8m in federal stimulus funds to improve the rail line and the passenger rail service between Sept-Îles and Schefferville.

The project aims to boost economic activities such as lumber, mining and tourism for isolated communities.

Out of the total $5.8m funds under Transport Canada’s Regional and Remote Passenger Rail Services Class Contribution Program, $2m come from existing capital funding and $3.8m under the Economic Action Plan (EAP) of Budget 2009.

The $3.8m funds under EAP will cover track replacements and repairs, the construction of two sheds and a turning track, improvements to electrical and telecommunications systems, and the acquisition of maintenance equipment.

The company is expected to spend $2.3m on these stimulus projects in 2009–10 and $1.5m in 2010–11.

The remaining $2m of capital funding will be used to purchase two service vehicles and safety equipment, update the passenger cars, and replace railway ties, rails and culverts in 2009.