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Yesterday, the governments of Canada and Quebec announced that they’d be investing more than $65 million during the next five years to upgrade short-line railroad infrastructure.

The Government of Canada will contribute $28.6 million, the Government of Quebec $19 million, and the nine short lines that operate in Quebec, $23.8 million. The federal contribution is covered through the Canada Strategic Infrastructure Fund (CSIF), which supports projects of “major national and regional significance” in areas that are vital to sustaining economic growth and supporting an enhanced quality of life, according to a prepared statement. Funding railway infrastructure through CSIF is a first in Canada.

The Government of Quebec also plans to invest an additional $20 million over five years as part of its Assistance Program for Modal Integration. In Quebec, more than 80 percent of the products short lines ship – primarily wood, paper, pulp, particle board, mineral ore and aluminum – end up in the United States.

“In addition to helping bring the Quebec regional railway network up to North American standards, the contributions of the two levels of government and the private investment will ensure the sustainability of this infrastructure, which is essential to shippers in the regions,” said Pierre Fallu, president and chief executive officer, Société de Promotion de L'industrie Ferroviaire, in a prepared statement.