THE Canadian Transportation Agency (CTA) has received a formal application to build a rail bypass around Lac-Mégantic, Quebec, advancing a project more than a decade in the making. The plan aims to divert freight traffic from the town centre, which was devastated in the 2013 derailment that killed 47 people and reshaped rail safety regulations across North America.

The 12.5km bypass, first announced in 2018, was then estimated to cost $C 133m ($US 95.9m). The federal government pledged 60% of funding, with Quebec covering the remainder.

However, project costs are now projected to exceed $C 1bn, raising questions over financing and delivery with neither government confirming how the escalating cost will be managed.

On July 6 2013, a runaway Montreal, Maine & Atlantic train with 75 tank cars carrying crude oil derailed in Lac-Mégantic, destroying much of the town centre and prompting the evacuation of 2000 residents. The disaster led to tighter tank car regulations in both Canada and the United States.

Proposed route for the future bypass at Lac-Mégantic. Credit: Government of Canada

Canadian Pacific Kansas City (CPKC) will manage and own the proposed bypass. CPKC inherited responsibility for the route after acquiring Central Maine & Quebec Railway in 2019.

The CTA filing, made under Section 98 of the Canada Transportation Act, contains environmental studies, consultation reports and groundwater monitoring plans. These will inform public consultation before the agency decides whether the line’s location is reasonable, balancing operational needs with community impact.

Transport Canada said the selected route has been recognised as the least disruptive to agricultural land and most advantageous overall by Quebec regulators. It also includes relocating rail operations to the town’s industrial park, a measure designed to improve safety and efficiency.

Nevertheless, opposition to the project remains strong. The Coalition des Victimes Collatérales (CVC) has issued an open letter to Canada’s transport minister, Steven MacKinnon, opposing the project. The group cited environmental damage, risks to drinking water and safety concerns over faster train speeds. It also criticised rising costs, demanding an independent review and the study of alternatives.

Construction cannot begin until CTA approval is granted. MacKinnon said the government is committed to removing the railway from downtown Lac-Mégantic and “will be ready to go as soon as the application is approved.”