US-headquartered short-line railroad company Genesee & Wyoming (GWI) will shut down the operations of its Canadian subsidiary Huron Central Railway (HCRY) by the end of October 2009.

The 173-mile line from Sudbury to Sault Ste Marie, Ontario was found by GWI to not be economically viable to operate for the long term due to the reduced traffic over the last 12 months.

The operations between McKerrow and Sault Ste Marie will be ceased by 15 August 2009 but the eastern segment of the railroad from Sudbury to McKerrow and Espanola will continue its operations till 31 October 2009.

HCRY has operated the line under a lease agreement with Canadian Pacific Railway since 1997.

During 2008, HCRY handled approximately 16,000 carloads generating revenue of $7.4m and incurred a $2.1m operating loss.