The Canadian Infrastructure Bank (CIB), the country’s Department of Transportation and Quebec have agreed to provide an investment package for the Tshiuetin Railroad, which is the only land transportation option for the three First Nations in northeastern Canada. Tshiuetin Rail Transportation has owned a 213 km Shefferville-Emeril regional line on the Labrador Peninsula of Quebec since December 2005. From Emeril to Seth Ile on the southern coast of the peninsula, Tshiuetin Rail freight and passenger trains run on the lines of two other companies, Quebec North Shore and Labrador Railway.
CIB will provide a long-term, fully repayable loan of CAD 50 million. dollars (40 million USD), the government of Quebec is investing 5 million canada. dollars with the condition of return within 2 years. Transport Canada, which has supported Tshiuetin Rail Transportation since 2005, will update the operator’s contract with an increase to at least CAD 12 million. dollars of an annual subsidy allocated to cover operating and capital costs.
The package includes expenses for the repair of track infrastructure, construction of a new station, purchase of a locomotive and passenger cars with a modern level of comfort and safety. Freight modernization aims to support new business initiatives and reduce greenhouse gas emissions by reducing travel times and operating modern rolling stock. The implementation of Tshiuetin railway development activities will contribute to employment growth and economic recovery in the surrounding areas.
For CIB, this is the first package allocated under the Indigenous Community Infrastructure Initiative (ICII), in which the bank plans to invest CAD 1 billion. dollars in infrastructure projects for the benefit of indigenous communities (photo: Tshiuetin Rail Transportation).