A $6.6-million plan to upgrade the Cayuga subdivision rail line has gained the support of councilors in Brant and Norfolk counties.
Both councils have agreed to provide letters supporting the project being led by the South Central Ontario Region Economic Development Corp.
The corporation, commonly called SCOR, is a regional partnership that also includes the counties of Elgin, Middlesex and Oxford. SCOR provides planning and co-ordination for regional issues and implements regional economic development priorities. It also identifies sources of funding for projects and works with other levels of government on economic development priorities.
Speaking at a meeting of Brant council, Kimberly Earls, SCOR’s executive director, said the letters of support are needed to apply for federal funding for the project.
Owned by CN Rail, the line runs roughly 27 kilometers from St. Thomas, through Oxford near Tillsonburg and into Norfolk. CN Rail announced in 2020 that the line would be discontinued.
Following the announcement, SCOR wanted to know if there was still a need for the line, Earls said.
A subsequent survey of seven businesses that employ just over 400 people found the loss of the rail line would translate into a combined loss of $8 million a year in revenue. And it would result in increased transportation costs of about $1.45 million a year.
“We decided that there was indeed merit in looking for some business development options for this rail line,” Earls said. “What we discovered through our study is that if we were to support continuance of the line in any form it would likely need some infrastructure investments and upgrades.”
Benefits of keeping the line open include keeping existing businesses in the region, as well as attracting new industry. The line also would provide an environmentally and economically sustainable mode of transportation for local businesses.
The line is important to Brant because it serves the IGPC Ethanol plant in Alymer, which gets grain and corn shipments from area growers, Earls said.
She said the next closest facility for corn is in Port Colborne.
“The line definitely has some regional agricultural impacts.”
The line is being operated by GIO Rail from St. Thomas to Tillsonburg but upgrades are needed to fully serve local businesses. Repairs and resurfacing are needed at many of the crossings and some bridges also need attention, Earls said.
SCOR is looking to apply to the National Trade Corridor Fund to cover 50 per cent of the needed upgrades. Discussions for support are also being held with various provincial ministries and SCOR hopes to get some assistance from municipalities as well.
Earls said that businesses that would benefit from the upgraded rail line have committed to providing financial support.
twitter.com/EXPVBall