Lac-Mégantic Rail Bypass
Location: Lac-Mégantic and Municipalities of Frontenac and Nantes
Issue/Source: Lac-Mégantic Rail Bypass Project update / TRAN
Date: March 2024
Suggested Responses
- The Government of Canada continues to work closely with its partners to complete the Lac-Mégantic rail bypass project as quickly as possible, while minimizing the project's impact on affected communities and ensuring the best possible integration.
- The Government of Canada took physical possession of the bypass land required for the project on August 1, 2023, via the expropriation process. An offer for a fair compensation package was sent to all landowners entitled to compensation.
- The project has $213.1 million of funding accessible in the 2024/2025 fiscal year which may be reprofiled to future years based on project needs.
- Construction of the bypass will begin once all regulatory approvals have been obtained, including from the Canadian Transportation Agency.
If Pressed
- On December 20, 2022, the Prime Minister of Canada and Premier of Québec met and agreed that both governments will increase their funding for the construction of the Lac-Mégantic Rail Bypass, to the same ratios as initially announced in 2018.
- As part of the 2022 Federal Budget, $237.2 million (M) was allocated to Transport Canada over five years for the construction of the Lac-Mégantic Rail Bypass. The Government of Canada reiterated that it continues to take important steps to advance the project.
- The Lac-Mégantic Rail Bypass Project has accessed $35.1M for the 2023/2024 fiscal year from the financing obtained for the project.
- On November 27, 2023, the Federal Court rejected the request for an interlocutory injunction against the expropriation process filed by certain landowners as part of the project.
- On February 9, 2024, the Government of Canada filed a motion with the Federal Court to dismiss the request for judicial review of the expropriation filed by certain landowners.
Background Information
- On May 11, 2018, the Prime Minister of Canada and the Premier of Québec, announced the Lac-Mégantic Bypass Project, which was estimated to cost $133 million at the time. It was to be jointly funded by the federal government (60%) and the province (40%).
- The Project consists of building a new 12.5 kilometers rail corridor going around the Lac-Mégantic downtown area. The proposed Bypass project will significantly reduce the number of residences located close to the new rail track (from 258 to 18 within a 100 meters right of way). The Project’s main objective is to help the Lac-Mégantic community to move forward and mitigate the traumatic effects associated with the accident.
- Transport Canada is working with Canadian Pacific Kansas City to seek the required regulatory approval from the Canadian Transportation Agency for the project. Transport Canada and Canadian Pacific Kansas City are drafting or updating documents to finalize the Canadian Transportation Agency application.
- On October 6, 2023, the Government of Canada announced progress on the Lac-Mégantic Rail Bypass project, including the signing of two essential agreements to launch the first calls for tender.
- A contribution agreement was signed between the federal government and the City of Lac-Mégantic to allow the City of Lac-Mégantic to relocate and reconstruct its municipal infrastructure.
- The Government of Canada also signed a contribution agreement with Central Maine & Quebec Railway Inc., a subsidiary of Canadian Pacific Kansas City, for the construction of the bypass project. The agreement outlines the terms and fundamental principles under which the railway operator will carry out the project. It will also enable the launch of the tendering process to contract a firm to carry out the work.