Rail expansion project on track.

Timmins is conducting a feasibility study into the expansion of freight rail services.

The city is expecting a positive announcement of $28,000 of government funding under the Rural Economic Development program for the feasibility study, which is expected to cost $46,000. The additional $18,000 will be covered by the private-sector partners.

Canarail Consultants, based out of Montreal, Que., has been hired to conduct the study, which will be completed by the end of May.

"The expansion of the railway was identified in the city's strategic plan. Building our Future," says Clara Lauziere, economic development officer, Timmins Economic Development Corp.

The feasibility study will review the possibility of extending the railway to the west end of the city. There are a few possible areas where the rail can be extended, including from Falconbridge Kidd Creek's site, Halnor Mine and around Porcupine Joint Venture properties to connect to forest industry properties.

Project partners include Grant Forest Products, Tembec Industries Inc. and Domtar. Porcupine Joint Venture became a recent partner, one of the first mining companies to jump on board.

The feasibility study will review the costs associated with the development of the railway and obstacles like the Mattagami River crossing, as well as the necessary environmental assessment," adds Mark Jensen, director of community development, City of Timmins.

"They will also analyze its potential usage by shippers, mining companies and the forest industry to see if it would be economical," says Lauziere.

Cutting back on costs is an important factor for the lumber industry, she adds, which is feeling the pinch in its pocket books with the ongoing softwood lumber dispute. As well, energy costs are continuing to sky rocket.

Of course the fate of the Ontario Northland Transportation Commission's Northlander could have an impact on the project. Presently there are ongoing discussions between the ONTC and CN Rail.

"If the ONTC sells the rail to CN, then we would have to determine if there could be a long-term shipping agreement reached to make the use of freight rail more cost efficient," says Lauziere. "The goal is to make transportation of their goods more cost efficient. By cutting their costs, we assist the forest industry in being more competitive. There are also opportunities for the industry to create more value-added products."

Transporting by rail would also reduce truck traffic throughout the community, which would reduce the potential for health and safety issues, adds Jensen.

The local mines are also interested in partnering in the process.