N. Ontario short-haul rail line shut down

SUDBURY, Ont. — Regional freight line Huron Central Railway will halt operations between Sault Ste. Marie and Sudbury, its American owner announced this week.

Genesee & Wyoming blamed poor economic conditions for the pending closure. The company said the 300-km rail line — which hauls mostly steel, as well as some chemicals and pulp and paper — will likely close by the end of the year.

"The downturn in the economy has caused the Huron Central’s traffic to decline substantially over the last 12 months, to the point that the railroad is not economically viable to operate for the long term," Genesee & Wyoming said in a release.

The company had threatened to cease the seven-day-week freight service if the Ontario government didn’t put up $33 million to fix the track, according to the Sudbury Star.

Although Ottawa pledged to match any provincial cash, no commitment was made.