Algoma Central Railway

Algoma Central Railway telephone car, Algoma District, Ontario, [ca. 1925]

The Algoma Central Railway was first owned by Francis H. Clergue, who required a railway to haul resources from the interior of the Algoma District to Clergue's industries in Sault Ste. Marie; specifically, to transport logs to his pulp mill and iron ore from the Helen Mine, near Wawa, to a proposed steel mill (which was later named Algoma Steel). The Algoma Central Railway was chartered on August 11, 1899.[1] The railway's Dominion and provincial charters gave it authority to build north from Sault Ste. Marie to a junction with the Canadian Pacific Railway's main line, as well as a branch line to Michipicoten Harbour, on Lake Superior near Wawa.

In 1901, Clergue acquired the charter of the Ontario, Hudson Bay and Western Railway, which was intending to build a line between the CPR main line and Hudson Bay. He then changed the name of the Algoma Central Railway to The Algoma Central and Hudson Bay Railway Company, anticipating a connection either to Moose Factory on James Bay or to some point on Hudson Bay.

The Algoma Central fell victim to the bankruptcy of Clergue's Consolidated Lake Superior Company in 1903.[1] At that time, the line reached 90 km (56 mi) north of Sault Ste. Marie, with a 32 km (20 mi) segment running east from Michipicoten Harbour that did not yet connect with the main line. Construction was stopped, but it was subsequently resumed in 1909 and the line was extended northward through to junctions with the Michipicoten Harbour branch (at Hawk Junction), the Canadian Pacific Railway (at Franz) and the Canadian Northern Railway (at Oba). In 1914, it finally reached Hearst, a town 476 km (296 mi) north of Sault Ste. Marie that was a divisional point on the National Transcontinental Railway.[1] By that point, Clergue's dream of building a railway to Hudson Bay or James Bay had long been abandoned, and the railway's northern terminus remained at Hearst, around 240 km (150 mi) from James Bay. However, the phrase and Hudson Bay was not removed from the railway's name until June 30, 1965.

The Algoma Central was the first Canadian railway to operate fully with diesel fuel, in 1952.[2]

The railway had been in the shipping business since 1900, when it had purchased four steamships. Starting during the 1960s, the railway greatly expanded its marine operations and diversified into trucking, real estate, forestry, and mining operations. These operations were more profitable than the railway operations, and on April 30, 1990, as part of a corporate reorganization, the name of the company was changed to Algoma Central Corporation, with the Algoma Central Railway becoming one of its subsidiaries.[3] A few years later, the Algoma Central Railway was put up for sale.

On February 1, 1995, Wisconsin Central Ltd. purchased Algoma Central Railway Incorporated, operating the railway as a separate subsidiary, Wisconsin Central Canada Holdings. In 1998, Algoma Steel closed its iron ore mine in Wawa and the branch line between Michipicoten Harbour and Hawk Junction was abandoned.[2] Wisconsin Central Ltd. was acquired by Canadian National on October 9, 2001, whereupon the Algoma Central became part of CN's Eastern Division.

In January 2014, CN announced it was cutting the service from Sault Ste. Marie to Hearst, blaming the Canadian federal government for cutting a subsidy necessary to keep the service running. The passenger service, which runs three days per week, provides year-round access to remote tourist camps and resorts. The average annual ridership is estimated to be 10,600 passengers. It has been argued in the past as an essential service; however, the service has always been deemed financially uneconomic.[4]

In February, a working group attempting to save the line hired BDO Canada LLP, an accounting firm, to assess the financial impact to the region when the service is scheduled to end April 29. The working group, composed of municipalities, first nations, and cottager associations, all had a vested interest in the continuation of the service.[5] According to preliminary findings, BDO determined passenger rail service in the Algoma district generates between $38 million and $48 million in annual economic activity. It supports as many as 220 jobs and delivers more than $5 million in tax revenues.[6]

In April 2014, the federal government extended funding for one year so that CN would continue to provide the passenger service. The $2.2-million subsidy was to facilitate the provision of service until 2015.[7] In March 2015, Railmark Canada Ltd assumed the passenger service with the intention to increase services and marketing.[8]

In March 2015, the Canadian government guaranteed funding of the service for an additional three years.[9]

In June of the same year, Canadian National said it would stop the service on July 15 after it was unable to make a deal with Railmark Canada. The government subsidy still stood, but a new rail operator needed to be sought by the regional stakeholders group. Railmark was unable to secure a line of credit from a lending group, which hindered its ability to take over services.[10]

Canadian National announced its intent in July 2020 to sell off non-core lines in the Upper Midwest as part of a rationalization programme, all of which were previously part of the Wisconsin Central system.[11] In December 2021, the sale of the former Algoma Central lines along with CN trackage in Wisconsin and Michigan was approved by the Surface Transportation Board.[12]

In March 2021, Watco announced that it would acquire the Algoma Central from Canadian National, along with the Wisconsin lines, sale of the latter being subject to final approval by the United States Surface Transportation Board. Simultaneously, Watco committed to a continuance of the Agawa Canyon Tour Train, as well as signing a memorandum of understanding with the Missanabie Cree First Nation regarding a potential partnership.[11] On April 20, the Missanabie Cree First Nation, N1 Strategy Inc. and The Machine Shop also signed a memorandum of understanding around logistics and operations of a resurrected tourist train.[13]

In the 1960s, the railway began to promote the natural beauty of the District of Algoma to tourists, especially the Agawa Canyon, a canyon carved by the Agawa River, located 114 rail miles (183 km) north of Sault Ste. Marie, and not accessible by road.[14] The Algoma Central developed a tourist stopover here and it proved to be a great success for the railway. Owing to the popularity of the Agawa Canyon excursions, the Algoma Central ran the longest passenger trains in North America, often up to 20 to 24 cars long. During the 1970s and 1980s, around 100,000 people per year visited Agawa Canyon.

The Agawa Canyon Tour Train has continued to operate as a separate entity since 2015.[15] The 2020 season of the Agawa Canyon tour train was cancelled due to the ongoing COVID-19 pandemic. During 2023 the tour train runs from early August to mid-October.[16]

In 2015, White Pine Pictures released the award-winning documentary film Painted Land: in Search of the Group of Seven [17][18] which was shot along the rail corridor. In 2016 the Moments of Algoma project was launched by the Algoma Kinniwabi Travel Association,[19] inviting tourists to follow the Group of Seven's travels, experiences and expressions of the region. The driving tour begins in Bruce Mines and follows the shoreline of Lake Huron and Lake Superior as far as Nipigon. Rail passengers will find more interpretive Installations in Agawa Canyon and at the train station in Sault Ste. Marie.[20]