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Ontario invests $138M to revive Northlander rail service

Daily Dive by Daily Dive
March 17, 2026
in Canada
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Ontario government official announces C$138M investment to revive Northlander rail service

Ontario announces C$138 million investment to acquire rail track and reinstate Northlander service between North Bay and Mosego.

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The Ontario government has invested C$138 million to acquire 205 kilometres of railway between North Bay and Washago, enabling the revival of the Northlander passenger service later this year and enhancing transportation reliability and economic growth in Northern Ontario.

NEW: Our government has invested $138 million to acquire more than 200 km of railway track between North Bay and Washago.

Today’s announcement marks another major milestone in our government’s commitment to bring back Northlander passenger rail service and deliver reliable… pic.twitter.com/oTiQa9V0gf

— Victor Fedeli (@VictorFedeli) March 13, 2026

Railway Acquisition and Investment Details

Ontario purchased the 205-kilometre section of the Newmarket Subdivision rail line from Canadian National Railway (CN Rail) to secure control over a critical corridor supporting the Northlander train service. The acquisition, costing C$138 million, covers the stretch from North Bay to Washago, which is more than a quarter of the full 740-kilometre route planned for the Northlander, connecting Timmins and Toronto with 16 stops along the way.

Ownership of the rail line allows the province to prioritize passenger rail scheduling and improve freight operations by reducing delays caused by the previous need to transfer freight between lines in North Bay.

Benefits of Provincial Rail Ownership

Prabmeet Sarkaria, Ontario Minister of Transportation, emphasized that provincial control will address past concerns about reliability and scheduling conflicts between freight and passenger services. “With the province owning this chunk of rail, we have control over those schedules,” Sarkaria said. “We can prioritize the passenger rail and we can make the freight rail more efficient.”

The enhanced operational control is expected to secure more reliable and timely transportation throughout Northern Ontario, which has faced challenges following the cancellation of the Northlander service in 2012.

Northlander Service Revival and Economic Impact

The Northlander passenger train service is scheduled to resume operations later this year after necessary testing and commissioning phases. The service aims to reconnect communities across Northern Ontario, supporting regional mobility and economic development.

Government officials expect the reintroduction of the Northlander to create employment opportunities and stimulate local business growth in the region. The investment is part of a broader provincial strategy to enhance transportation infrastructure and economic prospects in Northern Ontario.

Next Steps and Service Timeline

Following the railway acquisition, infrastructure upgrades including the North Bay Rail Bypass have been completed to support the new service. The province has also taken delivery of the first trainset designated for the Northlander route.

The Northlander is expected to operate a 740-kilometre route with 16 stops, linking Timmins in the north to Toronto in the south, with a connection to Cochrane. Service launch is planned for later in 2026 pending successful testing and commissioning.

“Our government has invested $138 million to acquire 205 kilometres of railway… to ensure more secure and reliable transportation throughout Northern Ontario,” said Prabmeet Sarkaria, Ontario Minister of Transportation.

“With the province owning this chunk of rail, we have control over those schedules. We can prioritize the passenger rail and we can make the freight rail more efficient,” Sarkaria added.

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