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The Government of Canada recently extended a $2.5 million funding agreement with Ontario Northland Transportation Commission (ONTC) to continue passenger-rail service between Toronto and North Bay. The agreement took effect on July 1.



For the past seven years, Transport Canada has provided funding for ONTC to continue passenger-rail operations. The provincial government and ONTC are seeking a long-term funding source for the Ontario Northland rail service.



Until 1996, the former National Transportation Agency (now the Canadian Transportation Agency) subsidized the Toronto-to-North Bay service. Transport Canada began providing funds when the Canada Transportation Act precluded the agency from subsidizing the system.