MIRAMICHI (GNB) – The installation of a new railroad tie on CN's Newcastle Subdivision today by dignitaries marked the start of work on the rail line.

“Today is the start of ensuring continued freight rail and passenger service to promote the growth and prosperity of many communities in northern New Brunswick,” said Premier David Alward. “Our government's investment in the future of these communities is an important part of our plan to create jobs and make life better.”

The provincial government and CN reached an agreement last January to preserve rail freight service on the Newcastle Subdivision.

“CN is pleased that rail and government stakeholders were able to come together to develop an investment solution that assures the maintenance of rail infrastructure and services in northern New Brunswick," said Sean Finn, CN's executive vice-president of corporate services and chief legal officer.

Under the agreement the provincial government will invest up to $25 million in rail infrastructure improvements to the Newcastle subdivision's northern and southern sections. CN will spend a comparable amount to maintain and operate the line. VIA Rail will provide $10. 2 million to CN for work on the line between Nelson Junction and Nepisiquit Junction.

“Today marks the first concrete step toward the rehabilitation of the Newcastle subdivision rail line, ensuring the continuity of the passenger rail service that is so important for northern New Brunswick communities,” said federal Transport Minister Lisa Raitt. “Thanks to the resources deployed to keep the rail line in operation, jobs will be maintained, allowing for growth and long-term prosperity in the region.”

“The work on the Newcastle subdivision ensures companies in northern New Brunswick can continue to ship their goods to market efficiently and the continuity of VIA Rail's Ocean service,” said Transportation and Infrastructure Minister Claude Williams.