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The Canadian government recently announced it will provide Algoma Central Railway $2.1 million in operating funds until March 31, 2007, to continue operating passenger-rail service between Sault Ste. Marie and Hearst, Ontario. The government also will provide the Canadian National Railway Co. subsidiary about $1.5 million to replace its passenger-rail fleet.

To be in service by fall, the new fleet will include two generator cars, one baggage car and three passenger cars featuring high-capacity electric heating, air conditioning, new upholstery and floor coverings, glazed windows and handicapped-accessible restrooms.

The funds will be provided through Transport Canada’s Regional and Remote Passenger Rail Services Contribution Program, which aims to ensure that passenger-rail service is provided to remote areas. In 2005, Algoma Central carried about 9,000 passengers.