The Town of Espanola is supporting Huron Central Railway in its funding request for $46.2 million from the federal and provincial governments.
The company, which runs a short line from Sault Ste. Marie to Sudbury, stated high costs, low commodity prices and new regulations are threatening closure by the end of the year.
Espanola Deputy Mayor, Bill Foster, says the railway with 43 employees, is an integral link for the Espanola and Nairn mills, which provide additional employment for another 700 people.
He adds the ability for these mills to receive chemicals by rail and ship product is vital to their ability to compete in global markets.
It is estimated that these mills generate over $600 million in economic activity in the area.
