A proposed rail corridor connecting Ontario mining operations to Quebec’s deep-water Port of Saguenay has gained government backing but faces challenges securing private sector investment, with concerns about traffic volume guarantees emerging as a key obstacle.
The project would rehabilitate approximately 160 kilometers of abandoned railway between Lebel-sur-Quévillon and Chapais, Quebec, creating a route to transport strategic minerals, including lithium and phosphate, from Ontario and Quebec mines to European markets.
Railway operators have expressed concerns about investing in rehabilitation without guaranteed traffic volumes, highlighting a key obstacle for the corridor’s development.
Both federal and Quebec officials have shown strong interest in the project. Canada’s 2025 budget allocated $5 billion over seven years for a Trade Corridors Diversification Fund, which could support infrastructure improvements at Port Saguenay, including a proposed second wharf.
In an interview with Radio-Canada, Federal Energy and Natural Resources Minister Tim Hodgson said the corridor represents “exactly the type of project we are interested in supporting,” but emphasized the need for private sector leadership.
Quebec officials estimate the project would require approximately $700 million to modernize the Saguenay–Lac-Saint-Jean rail network. Additional costs could arise if the project needs to bypass rail lines that Rio Tinto owns near Port Saguenay.
Rio Tinto said in a statement it “remains open to working with partners on regional economic development projects” provided they align with the company’s operations and meet environmental and social standards.
The corridor concept aims to reduce Canada’s dependence on north-south trade routes to the United States by establishing east-west connections. Port Saguenay officials have promoted the project as a strategic link for exporting critical minerals needed for defense applications and clean energy technologies to European markets.
The federal government relocated the Port of Saguenay from downtown Chicoutimi in the 1980s, giving it significant expansion capacity compared to more established urban ports. The facility currently handles aluminum, wood pellets, and metallurgical byproducts.
The project has garnered support from local officials, including the Union of Prefects of Saguenay–Lac-Saint-Jean and federal Bloc Québécois representatives from the region.
Prime Minister Mark Carney’s government has referred several major infrastructure projects to the newly created Major Projects Office, which aims to expedite approvals for developments that officials deem nationally significant. However, the Saguenay corridor has not yet won formal designation as a priority project.
Environmental groups, including the Groupe de recherche et d’éducation sur les mammifères marins, have raised concerns that increased shipping through the Saguenay Fjord could seriously impact marine mammals, particularly females and young.
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