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A study commissioned by the Railway Association of Canada (RAC) and Ministry of Transport for Ontario shows short lines contribute up to $1.2 billion in economic and social benefits to the province's economy.

Short lines in Ontario employ about 400 people, who earn $20 million in wages annually and contribute $7 million in federal and provincial taxes, according to the study conducted by CANARAIL Consultants of Montreal. The small railroads also support local industries that generate $4 billion in revenue annually.

"Short lines are an integral part of Ontario's transportation network, and play a key role in economic development and environmental sustainability," said RAC President and Chief Executive Officer Cliff Mackay in a prepared statement.