CANADA: A new federal program will rebate 50% of eligible rail and marine freight costs for Canadian steel, with up to $100 million available until funding is exhausted.

Canada Steel Rail Rebate Covers 50% of Costs
Transport Minister Steve MacKinnon announces a new Canadian government program to rebate costs of shipments of Canadian steel at a press conference in Hamilton, Ontario, on Aug 10, 2026. Transport Canada

Transport Canada launched the Commodities Sectoral Support Program on August 10, 2026. The funding is aimed at interprovincial shipments of eligible Canadian steel and steel products, and applications are assessed in submission order while funding remains available.

The program’s headline 50% rebate is calculated on the shipping cost after any discounts or incentives have been applied. That gives shippers a defined reimbursement rate, but not an automatic entitlement: each request must pass an eligibility assessment and remains subject to available funding.

Rail Shipments Must Cross Provincial or Territorial Borders

For rail, eligible steel must move as carload traffic between points in Canada and cross at least one provincial or territorial boundary. The shipment must appear on Transport Canada’s eligible-product list, include mill certification confirming the steel’s origin, and have been shipped and invoiced on or after August 10, 2026. There is no minimum shipment volume.

The rules also narrow what counts as an eligible cost. Taxes, penalties and extra contracted services that were not part of the original freight quote are excluded. Transport Canada gives extra rail switches beyond those normally included as one example of an ineligible additional service.

A further restriction applies to rail shipments originating at the ports of Vancouver, Prince Rupert and Montreal: those movements cannot receive the rebate, while eligible rail shipments ending at those ports can qualify. Transport Canada says the origin restriction is intended to prevent imported goods from receiving the rebate.

Don’t miss…KSR Bengaluru and Yeshwantpur Plan Platform Expansion

Each Shipper Can Receive Up to $50 Million

The program has up to $100 million available overall, while the cumulative maximum for an eligible recipient is up to $50 million. Rebates are allocated on a first-come, first-served basis after Transport Canada assesses eligibility.

Program feature Official rule
Freight rebate 50% of eligible shipping cost after discounts or incentives
Total program funding Up to $100 million
Maximum per eligible shipper Up to $50 million, cumulative
Allocation First-come, first-served, subject to eligibility and available funding
Payment after approval Within 20 business days

Applications must be submitted through the program’s online portal with the required shipment information, invoices and mill certification. Approved requests are scheduled for payment within 20 business days; requests can be rejected if they are ineligible or if funding has been exhausted.

News on railway transport, industry, and railway technologies from Railway Supply that you might have missed:

Don’t miss…Vande Bharat Sleeper Targets 16-Hour Bengaluru–Mumbai Trip