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Ontario halts ONTC wind-down; plans $23M investment instead
by Wendy Parker


The Ontario government has done an about-face on its plans to sell off or close the Ontario Northland Transportation Commission.

In a release this morning, the government said Ontario will continue to own and operate most of the century-old transportation network, which is headquartered in North Bay.

Two years ago, the government vowed to remove the money-draining operation from its books. Now, however, it intends to make “new strategic investments” amounting to more than $23 million over the next three years.

If approved, those expenditures would include new, accessible motor coaches for the bus line and refurbished passenger rail coaches for the Polar Bear Express to Moosonee.

Only the ONTC’s telecommunications unit – Ontera -- will actually leave the government fold. Bell Aliant will purchase the telephone and internet provider, which serves about 30,000 northeastern Ontario customers, for $6 million cash and other considerations that are expected to generate $10 million in long-term revenue for the ONTC.

As part of that deal, Ontario and Bell Aliant “will each commit $15.1 million as part of a $30.2 million public-private investment in telecommunications infrastructure in northeastern Ontario,” the release said.

Northern Development and Mines Minister Michael Gravelle, whose ministry oversees the ONTC, said he was pleased to announce that motor coach, PBX, rail freight, and refurbishment operations would remain in public hands.

“Our government is prepared to support these lines with new strategic investments of over $23 million and I look forward to our continued work as we transform the ONTC,” he said. “I am also very encouraged by what Bell Aliant will bring to support strong telecommunications services in the northeast, including a $30.2 million public-private investment in infrastructure.”

The release said today’s announcement stems from “extensive consultations with Aboriginal, municipal, industry and labour leaders and provides much-needed certainty to the communities of northeastern Ontario.”

In March 2012, the government stunned northerners with a decision to wind down the ONTC, discontinue the Northlander passenger train service between Toronto and Cochrane, and sell off the corporation's commercially valuable assets.

That, in turn, sparked a "new deal" counter-proposal from employees and local leaders that would see ONTC assets transferred to a ports authority, which would deliver services to northeastern communities and participate in the development of Ontario's far northern Ring of Fire mineral zone.






Wendy Parker | April 4, 2014 at 1:56 pm | Tags: economic development, mining suppliers, northern ontario economy, Ontario government, Ring of Fire, transportation | Categories: northern ontario, Ontario economy, Opportunities, Ring of Fire | URL: http://wp.me/p1KdlU-XS