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Yesterday, the Canadian government announced it will provide Algoma Central Railway $4.2 million to help cover passenger-rail operating expenses until March 31, 2009.

The Canadian National Railway Co. subsidiary provides service between Sault Ste. Marie and Hearst, Ontario, and carries passengers, staff and supplies to remote commercial lodges and tour points, many of which can only be reached by rail. In 2007, Algoma Central carried 7,800 passengers.

For the past decade, the Canadian government has provided up to $2.1 million annually for the railroad. In 2006, the government awarded Algoma Central an additional $1.5 million to refurbish its fleet.