The McInnis Cement Plant, part-owned by the Caisse de dépôt, will probably be a key beneficiary of the Gaspésie railroad redevelopment, which is able to value Quebec almost $1 billion.
• Additionally learn: The McInnis cement plant nonetheless spews sticky mud at its neighbors
Final week, Transport Secretary Geneviève Guilbault introduced an funding of just about $872 million to restore the rail hyperlink that stretches 325 kilometers between Matapédia and Gaspé. Completion is scheduled for 2026.
- Hearken to Sylvain Larocque’s enterprise part reside on the Gaspésie railway by way of QUB radio :
The invoice exploded
“When the preliminary announcement was made in 2015, we have been speaking about $100 million and a full reopening in 2022. After that, deadlines and prices skyrocketed. There was the pandemic, there have been many issues,” says Éric Dubé, Mayor of New Richmond and President of the Société du chemin de fer de la Gaspésie (SCFG).
Éric Dubé, Mayor of New Richmond and President of the Société du chemin de fer de la Gaspésie. Picture from the Ville de New Richmond web site
As of December 2020, trains can run to Caplan because of an funding of almost $55 million. Subsequent yr the federal government plans to finish the redevelopment of the Port Daniel–Gascons railroad – works price US$300 million.
That is excellent news for McInnis Cement Plant. “The rails move of their yard,” emphasizes Mr. Dubé.
At the moment, McInnis cement is shipped from the corporate’s marine terminal or trucked to an SCFG terminal in New Richmond the place it’s loaded onto railcars.
As soon as the railroad is rehabilitated, McInnis will have the ability to do that work proper on his property.
“At the moment, beneath the settlement with McInnis, trucking is the duty of the SCFG,” explains Éric Dubé. Changing vehicles with rail “will enhance our working prices,” he notes.
Since 2015, Quebec has backed SCFG operations with almost $59 million. The federal government has pledged to offer the group with a further $21 million over the subsequent 5 years.
On the lookout for different clients
McInnis is presently SCFG’s largest buyer. It additionally provides Groupe Lebel, a big forestry firm, and a handful of different clients.
A prepare operating on the Gaspésie railway. Picture from the SCFG web site
“What brings profitability is quantity,” recollects Mr. Dubé. Now we have to develop our markets additional.”
Do not forget that the cement manufacturing facility, the development of which was initiated by the Bombardier-Beaudoin household because of vital monetary assist from the federal government, began its exercise in 2017. Two years in the past, Brazilian big Votorantim took management of McInnis. The Caisse owns 17% of St Marys Cement, Votorantim’s North American division.
The rehabilitation of the ultimate stretch of rail between Port-Daniel-Gascons and Gaspé is predicted to value almost $518 million and be accomplished by the tip of 2026.
The SCFG and the federal government are already in talks with VIA Rail to influence the Federal Crown Company to renew service to Gaspé. The final time a passenger prepare obtained this far was over 10 years in the past.
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