A federal audit has defended the 400% passenger subsidy for Tshiuetin Rail, one of Canada’s few Indigenous-operated railways, stating that it remains more affordable than flying for residents of remote northern Québec. Blacklock's Reporter says the Tshiuetin line, which serves communities with limited transportation options, would not be viable without taxpayer support and will likely require even more subsidies in the future, according to the audit."Federal funding for passenger rail services in remote communities is essential to ensure individuals from these communities can access the ground transportation network and essential medical services," noted the Evaluation of the Remote Passenger Rail Program. The audit highlighted the critical role the railway plays for communities that lack year-round road access and face limited winter road availability.The 217-kilometer rail line operates 78 trains annually between Sept-Iles and Schefferville, serving 13,410 passengers last year at a federal cost of $12.4 million. This amounts to a subsidy of $925 per passenger, while travelers only paid $175 for a round-trip ticket. In contrast, the report pointed out that air travel is significantly more expensive, with return flights between the two cities costing around $1,900.Tshiuetin Rail, run by two Inuit groups and the Naskapi Nation, is one of only two Indigenous-operated railways in Canada, along with Manitoba’s Keewatin Railway. Both lines receive funding through the federal Remote Passenger Rail Program, which spent $14.2 million last year and is budgeted to increase to $21 million annually.Auditors acknowledged the possibility that even more government funding may be required to keep the rail lines operational. “Several interviewees felt there was a risk that program funding could be insufficient going forward given the rising costs of equipment, materials, labour, the maintenance of aging infrastructure and emerging factors like climate change,” the report said.The Remote Passenger Rail Program, introduced in 2005, was designed to subsidize rail services on routes that are not commercially viable but are crucial for the social and economic well-being of remote northern communities. The program aims to ensure affordable rail services, maintain a minimum number of trips per year, and support efficient travel times.Tshiuetin, which means "north wind" in the Innu language, continues to play a vital role in linking isolated communities to essential services despite the high cost of operation.
