Ontario Liberals Demand Answers Over Agawa Canyon Tour Train Relocation

Sudden move of beloved local landmark raises questions about public-private partnerships

Apr. 11, 2026 at 4:10pm

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A serene, cinematic painting depicting an empty Agawa Canyon Tour Train station, with warm sunlight and deep shadows creating a melancholic mood that reflects the uncertainty surrounding the landmark's sudden relocation.The sudden relocation of the Agawa Canyon Tour Train exposes the fragility of public-private partnerships and the need for stronger accountability measures when taxpayer funds are used to support private development.Sault Ste. Marie Today

The Ontario Liberal Party is demanding answers from the provincial government after the Agawa Canyon Tour Train, a major tourism draw for Sault Ste. Marie, was suddenly relocated from its longtime Canal District station to a private rail yard. The decision by operator Watco has sparked concerns about the durability of the public-private partnership that redeveloped the former paper mill site into a cultural and tourism hub.

Why it matters

The Agawa Canyon Tour Train is a crucial anchor for Sault Ste. Marie's tourism economy, with its seasonal surges funding countless local businesses. The sudden relocation raises questions about how public money is spent on development projects and whether there are enough accountability measures to protect the community's long-term interests.

The details

Watco, the operator of the Agawa Canyon Tour Train, has decided to move the train's departure point from the Canal District station to its own rail yard at 429 Carmen's Way. This shift has prompted concerns from local officials and the Ontario Liberal Party about the terms of the original $5 million in provincial funding that helped transform the abandoned paper mill site into a cultural and tourism hub.

  • The Agawa Canyon Tour Train has operated from the Canal District station for years.
  • In 2022, the Ford government provided $5 million to redevelop the former paper mill site.
  • Watco has now decided to relocate the train's departure point to its own private rail yard.

The players

Watco

The operator of the Agawa Canyon Tour Train, which has decided to relocate the train's departure point from the Canal District station to its own private rail yard.

Ontario Liberal Party

The opposition party that is demanding answers from the provincial government about the terms and accountability measures attached to the $5 million in funding for the Canal District redevelopment project.

John Fraser

The interim leader of the Ontario Liberal Party, who argues that public funding should come with minimum operating terms, clawbacks, and performance benchmarks to protect the community's interests.

Luke Dufour

A local city councillor who emphasizes the need for both sides to reach a reasonable agreement, given the importance of the Agawa Canyon Tour Train to the local tourism economy.

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What they’re saying

“Public money should come with guardrails; otherwise the taxpayer bears the downside when a single private operator makes a business decision that reverberates through a city's economy.”

— John Fraser, Interim Leader, Ontario Liberal Party

“Both sides should be doing everything possible to reach a reasonable agreement, underscoring the stake local businesses—hotels, restaurants, tour operators—have in predictable, stable access to the train's fall rush.”

— Luke Dufour, City Councillor

What’s next

The Ontario Liberal Party has vowed to continue pressing the provincial government for answers about the terms and accountability measures attached to the $5 million in funding for the Canal District redevelopment project.

The takeaway

This episode highlights the need for public-private partnerships to be designed with robust accountability measures and enforceable commitments to protect the community's long-term interests, even when private operators make strategic business decisions that impact the local economy.