Canadian New Brunswick Southern Railway, a 364km shortline stretching from Saint John to Brownville Junction and from McAdam to St Stephen has been awarded $36m for renovation.
Federal and provincial governments will contribute $9m each and the railway's owner JD Irving Group will provide $18m.
The renovation work involves upgrading the rail terminals in McAdam and west Saint John, mainline track from Saint John to the New Brunswick-Maine border and tracks from McAdam to St Stephen.
The overhaul is aimed at bringing the railway's operations up to the weight standards of class 1 railways to boost business in the province.
