The previous operator of the former Algoma Central intercity rail passenger service has a new proposal to operate the service.
Railmark Canada Ltd. is seeking to run trains from Hawk Junction to Hearst, Ontario, providing three weekly roundtrips for the remainder of the 2015 tourist season and two roundtrips during the winter.
In 2016, Railmark would increase service to six trains per week.
Earlier this year, Railmark took over from Canadian National operation of service between Sault Ste. Marie, Ontario, and Hearst.
That service, which began May 1, halted on July 15 after CN said that Railmark had been unable to obtain financing for the service.
CN has continued to operate for the summer the Agawa Canyon tourist trains on the route, but service to Hearst has been suspended.
The financial problems came to a head in late June when the Sault Ste. Marie City Council voted unanimously not to sign a formal funding agreement with Railmark because it had failed to secure a line of credit from a bank
The Council had required a line of a credit as a requirement for signing the agreement, which was needed so that Railmark could receive federal funding to operate the service.
Canadian law dictates that only a municipality or a First Nation can administer the form of federal grant that is subsidizing the Algoma Central passenger operations.
Railmark said its latest service proposal would be coordinated with VIA Rail Canada, which offers passenger service on Canadian Pacific and CN crossings of the Algoma Central at Franz and Oba.
However, doing so may be difficult, due to the tri-weekly schedule of VIA’s Canadian and the unpredictability of that train’s on-time performance, particularly eastbound.
Railmark said it’s latest proposal would cost about half of the amount needed for Sault Ste. Marie – Hearst service and would achieve self-sufficiency in less than five years as opposed to the full Sault Ste. Marie – Hearst plan.
Railmark has proposed the creation of a stakeholder’s advisory board, including representatives of a recently formed, non-profit organization promoting the interests of the rail line’s northern communities.
The Railmark proposal would in addition to any efforts that are currently being undertaken by the Sault Ste. Marie Economic Development Corporation to restore rail service.
Once it has given its plan to the northern stakeholders and communities along the line Railmark said it would be making its own application for funding through another city of a First Nation.
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