Rails made in China on the Québec Central railway

Bound by international trade agreements, the Quebec Ministry of Transport (MTQ) was unable to prevent the purchase of Chinese rails in the rehabilitation of the Quebec Central railway, a project financed with public funds.

Solely for the purchase of the rails, the contract worth $26 million was awarded to the company A&K Railroad Materials, which has its headquarters in Utah, after a call for tenders published at the end of 2023. The rehabilitation project consists of the replacement of 109 km of railway line, between Lévis and Thetford Mines, in addition to the reconstruction of bridges, culverts and level crossings for a total of $500 million in investments (see box).

The first part of the section is already in service. As for the section between Vallée-Jonction and Thetford Mines, it should be inaugurated at the end of 2025.

The supply of rails manufactured in China takes place in a context where the Canadian government is preparing to impose, from October 22, a 25% surcharge on Chinese steel and aluminum to counter unfair competition from the Middle Kingdom.

High carbon content

“By massively subsidizing its steel industry, China has been able to flood international markets, completely crush production in certain market segments, and even completely destroy many domestic industries, thereby rendering many industries and governments dependent of high-carbon Chinese steel,” denounced François Desmarais, vice-president, Trade and Industrial Affairs at the Canadian Steel Producers Association (ACPA).

In the case of the Quebec Central railway rails, the surcharge will not be able to apply since the goods have already been delivered, as noted The Journal by going to a storage site in Thetford Mines (see photos).

For its part, the MTQ is aware that the rails supplied for this project are manufactured in China, but it admits its powerlessness.

“There was an international call for tenders. It was an American firm that won it and which has offices in Canada. This firm subsequently obtained its supplies from a Chinese producer. The ministry had no leverage to prohibit it. We did the maximum that was possible. The Ministry of Transport is always sensitive to local purchasing when possible,” indicated Nicolas Vigneault, spokesperson, insisting on the fact that the ministry is required to respect commercial agreements.

Steel producers are imploring the federal government and provinces to favor local industry in their calls for tenders to protect jobs against competition from China.

In Quebec, there is no longer a producer of railway rails, although some can still be found in the United States.

Despite recourse to the courts to stop anti-dumping practices, overseas steel imports (excluding the United States and Mexico) increased from 19% to 38% between 2013 and 2023, according to the ACPA.

The project in brief

1994: End of activities of the Quebec Central railway, built in 1869, which links Lévis to Sherbrooke and Lac-Frontière over 344 km;

2007: The MTQ acquires 220 km of railway tracks for $10 million;

2023: The government commits to rehabilitating the 109 km of the railway between Lévis and Thetford Mines;

– Sections 1 and 2 (between Lévis and Vallée-Jonction) are in operation. The project cost $59.2 million;

– The rehabilitation of sections 3 and 4 (between Vallée-Jonction and Thetford Mines) is underway. This represents an investment of $440 million;

2025: Commissioning of the final sections.