CANADIAN ENVIRONMENTAL ASSESSMENT AGENCY - PROJECT DESCRIPTION SUMMARY Milton Logistics Hub

Prepared for: Canadian National Railway Company 935 de La Gauchetière Street W Montreal, Quebec, H3B 2M9

Prepared by: Stantec Consulting Ltd. 70 Southgate Drive, Suite 1 , , N1G 4P5

April 01, 2015

1.0 GENERAL INFORMATION

The Canadian National Railway Company (“CN”) is proposing to invest 250 million dollars by constructing a logistics hub in the Town of Milton in the Region of Halton in , known as the “Milton Logistics Hub” (“Milton Hub” or “the Project”). The Project will be built on approximately 400 acres (160 hectares) of CN-owned land adjacent to CN’s Halton Subdivision, which is one of CN‘s existing main rail corridors in the western half of the Greater and Hamilton Area.

The Project will include both the construction of a new hub and the realignment and extension of the existing mainline. To accommodate the proposed hub, a section of the existing mainline will be shifted eastward within 100 m of the railway centre line and the mainline will be doubled from Ash station to a point south of Derry Road.

The Project will generally be bounded by Britannia Road to the north, First Line to the east, Tremaine Road to the west, and 2nd Sideroad to the south. The Project is appropriately located next to the existing CN mainline and on properties entirely owned by CN. Figure 1 shows the location and regional setting for the Project.

Proponent Project Contact Normand Pellerin Canadian National Railway Company Assistant Vice-President Environment and 935 de La Gauchetière Street West Sustainability Montreal, Quebec H3B 2M9 Canadian National Railway Company Phone: 519-399-7400 Email: [email protected]

General inquiries regarding the Project can be sent to [email protected] or by calling the CN Milton Information Centre at 1-800-216-9466 to ensure all comments can be tracked and properly directed to the appropriate representative for an accurate and prompt response. For more Project information, please visit www.cnmilton.ca.

CN has taken a staged approach to consultation in an effort to characterize existing constraints and refine the Project design prior to engaging area municipalities, agencies and other project stakeholders. Informal consultations have occurred with senior agency officials, elected federal provincial and municipal officials, their key political staff, and key community members and organizations to inform them about CN’s desire to construct and operate a hub at the proposed location.

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Additional meetings were held with several federal and provincial agencies to provide a general briefing and preliminary introduction of the Project. Further consultation with these agencies, and others, are anticipated to continue.

Local municipalities and adjacent landowners were also consulted regarding the Project. Various agencies have been contacted to request existing background information to supplement publicly available documents. Information and comments received from these agencies will be considered in the final design of the hub.

Project notification was announced by press release on March 17, 2015 and notices forwarded to individuals representing the agencies, Aboriginal communities, community representatives and the public. Further consultation will continue with these stakeholders.

The Project Description has been submitted to the Canadian Environmental Assessment (“CEA”) Agency to describe the Project in relation to the requirements of the Canadian Environmental Assessment Act (“CEAA”), 2012.

The Project will result in alterations to Indian Creek and its tributary that will be mitigated through enhancements in order to minimize impacts to existing fish habitat. The Project will be subject to review and approvals by the Department of Fisheries and Oceans to ensure impacts are mitigated appropriately and proposed enhancement measures offset serious harm to fish. Notices will be issued for the prescribed works to Road Authorities, adjacent landowners and municipalities as required under Section 8 of the Railway Safety Act. No other federal or provincial approval requirements are anticipated for the Project.

At this time, there are no regional environmental studies, as defined by the CEA Agency, being conducted for this area.

2.0 PROJECT INFORMATION

The Project will accommodate the growing demand for intermodal services and ensure service and fluidity through the Greater Toronto and Hamilton Area as the Intermodal Terminal approaches capacity with limited land available for expansion.

Intermodal, the movement of containerized goods via two or more transportation modes, is one of the fastest growing sectors in rail transportation. To meet growing demand for intermodal services, CN’s strategy has evolved to a two facility concept for the Greater Toronto and Hamilton Area.

The Project will include the construction and operation of 6 yard tracks (3 pad tracks and 3 service tracks). The yard tracks will support intermodal operations, including tracks to accommodate the loading and unloading of intermodal cars (pad tracks) and tracks to hold and switch rail cars (service tracks).

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To accommodate the new hub and facilitate railway operations through this area, the two existing mainlines will be realigned. The north track will be realigned to the east by a maximum distance of 98 m. This shift will result in the realignment of the existing mainline and its extension by an additional 45 m, approximately, of track length. The south track will also be realigned to the east and extended from Ash station (Mile 39.50) to a point south of Derry Road (Mile 36.86). The Project will result in the construction of approximately 4,200 m of additional track along the mainline and approximately 20,510 m of new yard track for a total of approximately 25 km of new track. A significant portion of mainline construction will take place within CN’s existing right- of-way. All mainline tracks will be located on property owned by CN, all within 100 m from the centre line of the existing mainline. No new property or right of way is required to accommodate this new track.

The Project is a designated project as described in the Regulations Designating Physical Activities for rail activities prescribed in section 25 (b) of the Schedule of Physical Activities, where the length of proposed new yard track exceeds 20 km.

The Project is designed to accommodate trains directly from the mainline to either a pad track or to a service track, based on the train’s design. Once on the pad tracks, containers will be unloaded and loaded from rail cars and chassis by rubber-tired cranes (such as reach stacker mobile cranes). There will be space available on the workpads to allow for temporary staging of containers and chassis, as well as to facilitate container and truck movements through the hub.

Entrances will be required, including one for trucks to enter/exit the hub (Britannia Road) and one for employees and service/delivery vehicles to access the administration building and hub (Tremaine Road). The proposed access for trucks will be via Britannia Road, which will require a new private overpass on CN property to enable trucks to enter the hub without the need for an at-grade crossing of the mainline. An alternate entrance at Tremaine Road for trucks is being also considered. In either scenario, a check point will be located at the entrance of the proposed hub for trucks.

A signalized intersection is anticipated on Britannia Road to accommodate the truck entrance, including a turning lane for queuing of trucks entering the hub from the east. Trucks will be directed east on Britannia Road. In the event that a Tremaine Road truck entrance is selected, similar improvements to Tremaine Road would apply.

An employee entrance is proposed on Tremaine Road (north of the alternate truck access) for employee personal vehicles and the occasional service vehicle to enter/depart the hub. Vehicle demand at this location will be generally low and may not generate the need for roadway upgrades.

Buildings proposed for the Project include an administration building and an attached maintenance garage. The garage will be used for repairs and servicing equipment used at the hub. The employee entrance accessed from Tremaine Road will lead to a parking lot designed to accommodate approximately 100 vehicles and parking for approximately 100 tractors.

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Electricity will be obtained by connecting to the local grid for (a) office, garage and gate use, (b) to power lights, (c) to provide electric power for refrigerated containers awaiting pick up, and (d) potentially to power or supplement fossil fuel requirements for the lift equipment (based on available technology).

Long-term potable water will be obtained through municipal services, once available. In the short-term, potable water for office use will be trucked in. The domestic water for the building is to be served by a 2,000 gallon domestic water storage tank, which shall be distributed by a duplex pumping station complete with local isolation.

Rain water will be collected and stored in a cistern for the garage and wash bay. Additional required water will be generated through water recycling or trucked in and stored in the cistern.

Sanitary services for the hub will be drained into a holding tank.

Natural gas is preferred to heat the administration building and garage, to potentially provide fuel for the shunt trucks, and to potentially power or supplement fossil fuel requirements for the lift equipment. Based on availability of services, natural gas will be delivered to the site by truck.

A stormwater management plan has been developed for the Project area to allow for surface water run-off from the hub to be collected and managed to maintain water quality and quantity draining to Indian Creek. Stormwater management ponds will be equipment with oil water separators to improve water quality and shut-off valves to be engaged in the event of an accidental spill to protect the downstream environment.

To accommodate the Project, mitigate potential impacts on Indian Creek and to address potential long-term scouring of the CN right of way, a realignment of Indian Creek is proposed. Tributary A will be realigned around a proposed stormwater management pond, with two reaches to be enclosed in concrete box culverts beneath the yard tracks and truck entrance gate. An existing on-line pond will be removed to improve flows, fish passage and water quality in Indian Creek, with additional restoration and enhancement proposed through natural channel design, riparian plantings and habitat enhancements.

In order to avoid disruption to vehicular traffic while train movements enter or exit the hub, CN is proposing to create a grade separation where Lower Base Line (Mile 40.68) crosses the existing mainline at grade just east of Tremaine Road. An underpass approximately 40 to 55 m long will route Lower Base Line beneath the existing tracks and proposed hub within the existing municipal right of way. Alternatively, a realignment of Lower Base Line southward along the east side of the hub on CN property to an overpass that would line up with 2nd Sideroad at Tremaine Road is considered.

In total, there are two existing pipelines that transect the Project site. They are owned by Sun- Canadian Pipeline Co. Ltd. and run east-west through the Project site south of Britannia Road.

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There are opportunities to relocate the Sun-Canadian Co. Ltd. oil pipelines on property controlled by CN.

Solid wastes will be generated during construction activities and operation of the hub. Solid wastes will be either recycled or disposed of through licensed waste disposal companies at licensed facilities.

The existing rail traffic along CN’s Halton Subdivision is currently 25 to 30 trains per day. As a result of the Project, two additional trains will be used on the mainline each day between Brampton and the Milton hub.

The hub is being designed to handle approximately 350,000 containers at the start of operation. It has been designed to accommodate approximately 800 trucks per weekday entering and exiting the hub, which includes 650 inbound and 650 outbound trucks at the beginning and up to 800 trucks each way by 2020. These trucks will enter the hub through the gate, drop off or pick up a container from the hub and exit the hub.

The Project schedule is provided below.

Activity Project Schedule Site Preparation Q3 2016 – Q4 2016 Construction Q3 2016 – Q4 2017 Commercial Operations End of Q4 2017

There are no expectations that the Milton Hub will ever be decommissioned.

3.0 PROJECT LOCATION INFORMATION

The Project site is located within the Town of Milton, Region of Halton and is appropriately situated next to the existing CN mainline and on properties entirely owned by CN. Figure 2 shows the Project site.

The coordinates of the centroid of the Project area are as follows:

• Easting: 594182 • Northing: 4812535 • Latitude: 43.4598 ° N • Longitude: -79.8358 ° W

Land use in this area is comprised of agricultural land, the majority of which is row crops with some pasture land and hay fields. The ground surface cover across the Project site is comprised largely of farm fields, sparse hedgerows and small vegetation communities influenced by

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adjacent agricultural activities. Vegetation communities within the footprint of the Project include cultural meadows and thickets, pine plantations, cultural savannah and meadow marsh communities, with a shallow marsh / open water area associated with the on-line pond on Tributary A. The Project area offers limited high quality wildlife habitat given its level of agricultural activity, although provides habitat for a variety of grassland bird species, including Bobolink (Dolichonyx oryzivorus), Eastern Meadowlark (Sturnella magna) and Barn Swallow (Hirundo rustica). A single Snapping Turtle (Chelydra serpentina) was observed incidentally within the riparian area adjacent to Tributary A.

The Project site is located within the Indian Creek sub-watershed of Bronte Creek. Three watercourses, including Indian Creek, Tributary A and Tributary B, cross the Project Site. Both Indian Creek and Tributary A provide direct fish habitat, while Tributary B contributes surface flow across an active agricultural field. Indian Creek is a permanently flowing warmwater system that supports a variety of fish species, although water quality and riparian areas has been impacted by agricultural activities. Tributary A is an intermittent stream with well-defined, stable banks and substantial flow, that appears to have been straightened in the past. An on-line pond with berm and control structure occurs at the downstream end of this tributary before entering Indian Creek.

There are a few residences fronting First Line, Tremaine Road and Lower Base Line. This limited development includes landscaped grass and hard cover (driveways, walkways). Ambient air quality within the Project area is influenced by emissions from local industrial sources and vehicular traffic, although a review of ambient monitoring data in the Halton area has shown that the measured average NOX, CO, SO2 and particulate matter ambient levels are below the federal (National Ambient Air Quality Objectives and Canada Wide Standards) or provincial (Ontario Ambient Air Quality Criteria) air quality standards. New sources of air emissions during construction and operation are not predicted to exceed applicable air quality criteria for the contaminants of concern at the residential receptors in all directions around the Project site.

The Project work will contribute to noise levels in the area during the construction and operation phases, which is governed by Section 95.1 of the Canadian Transportation Act. Mitigation measures are recommended to reduce and manage noise levels resulting from construction and operation of the hub, including implementation of berms/ barriers and the selection of equipment (design of generators) with overall sound power levels not exceeding 109 dBA.

The lands where the Project is to be developed are located outside of the Town of Milton Existing Urban Area Boundary, and are designated as Agriculture in Town of Milton Official Plan. However, according to the Halton Region Official Plan, the lands west of the existing CN mainline are located within the Urban Boundary (as amended 2013) and are designated for employment lands.

The Project is located within Treaty 13A representing the Mississaugas of the New Credit First Nation. Their reserve is located approximately 40 km southwest of the Project. This community is the closest federal lands to the Project, as defined in CEAA 2012. There will be no federal lands

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used for the purpose of carrying out the Project, nor will there be any granting of interest in federal land (i.e., easement, right of way, transfer of ownership).

4.0 FEDERAL INVOLVEMENT

In addition to CN’s contribution, CN, in collaboration with Halton Region will be seeking Federal funding through the Build Canada program. Although no specific components have been identified for funding at this time, CN anticipates that funding will be required for works surrounding the Project such as road and/or intersection upgrades.

5.0 ENVIRONMENTAL EFFECTS

Potential environmental effects of the Project will be mitigated through the implementation of various measures to be employed during construction and operation of the hub. An existing portion of cultural thicket and meadow marsh communities on the east side of the existing mainline will be removed. Additional areas adjacent to Indian Creek and Tributary A will be naturalized, restored and enhanced to create and improve stable channels and wildlife habitat.

In general, soil stratigraphy in the Project site consists of surface vegetation with associated topsoil, underlain by native sandy silty clay till and silty clay glacial till soil. CN will implement best management practices for the conservation and management of topsoil within the Project area for grading and construction. Erosion and sediment control measures will be installed, monitored and maintained during all phases of construction to minimize soil erosion potential and sedimentation. Where feasible, the topsoil will be salvaged for restoration activities elsewhere on the property to preserve seed sources.

The removal of active hay fields will be required, which are habitat for grassland birds including Bobolink and Eastern Meadowlark. CN intends to pro-actively mitigate the potential impacts of the Project by working with a non-profit organization, such as Ducks Unlimited, to identify opportunities for the creation, securement and long-term management of grassland habitat for species potentially affected by the Project.

Potential impacts on groundwater resulting from the construction and operation of the hub will be minimized through the implementation of mitigation measures such as fueling vehicles, locomotives and other construction equipment in designated areas. Oil water separators to improve water quality and shut off valves to be engaged in the event of an accidental spill to protect the downstream environment will be incorporated in the design of the stormwater management system.

A realignment and enhancement of Indian Creek is proposed to accommodate the hub and minimize long term maintenance along the outer meander of Indian Creek. The channel realignment is designed based on natural channel design principles to emulate local stable

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reaches of Indian Creek, which would include aquatic habitat enhancements, riparian vegetation and enhanced watercourse health. An alternative to the realignment is the construction of a 4 m high (maximum height) by approximately 285 m long retaining wall along the northeast bank of a wide radius meander of the existing Indian Creek channel. This option would require riparian enhancements upstream of the retaining wall to maintain a meadow habitat with shrubs and trees adjacent to the creek.

Tributary A flows will be conveyed through a 200 m concrete box culvert beneath the yard tracks and a 100 m concrete box culvert beneath the truck entrance gate, into a realigned channel around the stormwater management pond. This will maintain separation of Tributary A flows upstream of the hub and water collected and treated from the hub.

As part of the realignment of Tributary A, enhancements to the channel will include the removal of the existing dam structure and wetland enhancement of the existing impoundment area. These features will result in the establishment of additional wetland area to compensate for wetland loss associated with the hub construction.

There were no aquatic Species at Risk observed onsite or known to occur within Indian Creek or Tributary A.

There will be no continuous air emissions associated with the Project. Intermittent air emissions as a result of the Project construction and operation will consists of products of combustion. Intermittent air emission sources from hub construction include trucks, excavators, loaders, graders and construction dust from equipment traffic on unpaved roads. Hub operation air emission sources include trains, reach stackers, hostlers, containers, generators, building heaters/furnaces and trucks.

Temporary construction noise is expected and sound levels may vary as activities change in location and intensity (i.e., types and number of construction equipment operating). Construction equipment expected to operate during construction include excavators, dozers, grazers, loaders, backhoe, dump trucks, compactors, rollers, gunsets, water pumps, scrapers, augers/drill rigs and water trucks. Once the hub becomes operational, the noise will typically be from the operation of onsite equipment such as stackers/loaders, locomotive and rail car activities, truck traffic, generators, idling and shunting/train assembly. Trucks passing over rail crossings, container stacking and shunting/train assembly operations could generate noises with impulsive qualities. Power generators could also generate noises with tonal qualities.

Consultation with the Town of Milton and Ministry of Tourism, Culture and Sport will be undertaken to determine the presence of designated, listed, or registered heritage properties within the Project area. A Stage 1 archaeological assessment identified a moderate to high potential for archaeological resources in areas of the Project. A Stage 2 archaeological assessment has been initiated for spring 2015, which will confirm potential archaeological resources and appropriate mitigation measures prior to construction or operation of the hub. Carrying out the Project is not expected to encounter palaeontological resources.

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The Project will not require access to, use of, or the exploration, development, and production of resources or lands currently used for traditional purposes by Aboriginal peoples. As such, the Project is not expected to adversely affect Aboriginal peoples.

There will be no federal lands used for the purpose of carrying out the Project, nor will there be any granting of interest in federal land. As such, the Project is not expected to have any interaction with federal lands, nor is the Project expected to have any adverse environmental effects outside of Ontario or outside of Canada.

6.0 PROPONENT ENGAGEMENT AND CONSULTATION WITH ABORIGINAL GROUPS

CN has identified the Mississaugas of the New Credit First Nation, on whose Treaty Lands the Milton Hub is situated, as potentially interested in the Project.

CN met with the Chief of the Mississaugas of the New Credit First Nation on March 11, 2015 regarding the Project. This meeting included providing a general introduction to the Project and confirming CN’s commitment to continuing consultation with this community. Further consultation with Aboriginal communities will continue in cooperation with the CEA Agency, as necessary.

CN’s Aboriginal vision, adopted by management seeks to:

• Develop respectful and mutually-beneficial relationships with all Aboriginal people, while ensuring service to our customers; and, • Be recognized by key stakeholders, including customers and Governments, as having a sound approach to dealing with Aboriginal communities and having a respectful and sustainable relationship with Aboriginal people across the CN network.

CN will be developing a Consultation and Engagement Plan, in conjunction with the CEA Agency, that will include Aboriginal Engagement. The Plan will be a living document and will be reviewed regularly and updated accordingly as the Project progresses.

The following communication tools will be utilized as appropriate throughout the Project:

• project notices published in local newspapers; • direct mailings to communities; • public Information Centre and comment forms; • a project website; • targeted e-mails; • meetings, presentations, e-mails and phone conversations; • newsletters and/or frequently asked questions; and, • social media including Twitter and Facebook.

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CN will be responsible for tracking communications through a Consultation Log/Stakeholder Database to document the communications and responses.

7.0 CONSULTATION WITH THE PUBLIC AND OTHER PARTIES

Non-Aboriginal stakeholders identified by CN who may be potentially affected by and/or have an interest in the Project are listed below.

Federal Government Canadian Environmental Assessment Agency Department of Fisheries and Oceans Canadian Transportation Agency Environment Canada Transport Canada Department of Finance Local Members of Parliament Provincial Government Ministry of Natural Resources and Forestry Ministry of Transportation Ministry of the Environment Minister of Finance Minister of Economic Development, Employment and Infrastructure Ministry of Labour Ministry of Municipal Affairs and Housing Ministry of Tourism and Culture Treasury Board Community Safety and Correctional Services Local Members of Provincial Parliament Premier’s Office Municipal Government Halton Region Town of Milton Town of Oakville City of Burlington Town of Conservation Authorities Conservation Halton Local Landowners, Occupants Major land developers with property north of the Project site and Residents All landowners, residents and occupants

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Regional Associations Ontario Chamber of Commerce Milton Chamber of Commerce Oakville Chamber of Commerce Burlington Chamber of Commerce Halton Hills Chamber of Commerce Toronto Region Board of Trade Canadian Chamber of Commerce Canadian Association of Freight Forwarders Southern Ontario Gateway Council Ontario Trucking Association Canadian Manufacturers and Exporters 407 ETR Utilities Sun-Canadian Pipeline Co. Ltd.

Landowners, residents and occupants include private residents, farmers, various developers and local industries, waste management services, and natural gas pipeline companies. Those stakeholders who may be potentially affected and/or interested in the Project have been or will be included in discussions relating to the Project.

Public notification of the intent to proceed with the Project was announced on March 17, 2015. Information regarding the Project was disseminated to various stakeholders and the public through the following means:

• media release announcing the project was published on Canada NewsWire on March 17, 2015; • copy of the March 17, 2015 media release was forwarded to a preliminary list of stakeholders on March 17, 2015; • project notice published in local newspapers beginning on March 19, 2015; • direct mailings; • launch of the CN Project website (www.cnmilton.ca); • announcement during a breakfast of the Milton Chamber of Commerce on March 19, 2015; • targeted e-mails were forwarded to the preliminary list of project stakeholders; and, • on social media.

Local municipalities were consulted regarding the Project. More specifically, a meeting was held with planning and technical officials from the Town of Milton and the Region of Halton on January 8, 2015. Further, on February 3 and March 11, 2015 meetings were held with planning and technical officials from the Town of Milton, the Region of Halton and Conservation Halton. The purpose of these meetings was to provide information and solicit feedback regarding the hub design, existing site constraints and proposed mitigation, restoration and enhancement opportunities.

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The following preliminary key comments and concerns have been expressed by the stakeholders who have been consulted to date:

• Region of Halton – request for additional information regarding Project design and supporting background studies, potential impacts on the natural environment, potential impacts on road networks, potential noise and light impacts; • Town of Milton – request for additional information regarding Project design and supporting background studies, potential impacts on the natural environment, potential impact on road networks, potential noise and light impacts; and, • Conservation Halton – potential impacts on Indian Creek flows, floodplain and valley feature, and consideration of subwatershed impacts resulting from the Project.

CN will address these comments and concerns throughout the EA process.

Consultation with the CEA Agency began at the end of 2014 and into 2015 to provide an introduction of CN, the Project, and to gain guidance on the CEAA process for the Project. A project overview was discussed with the CEA Agency on February 27, 2015, which was followed by a meeting on March 4, 2015 to discuss CEAA 2012 triggers for the Project.

Beyond consultation with the CEA Agency, discussions and meetings were held with officials from the Canadian Transportation Agency and Minister of the Environment in late 2014 regarding the Project. CN met with officials from the Canadian Transportation Agency on November 24, 2014 to discuss works associated with the CN mainline, environmental assessment implications and applicability of the Project to this Agency.

Consultation with provincial regulators, including, among other, the Ministry of Finance, Ministry of Economic Development Employment and Infrastructure, Ministry of Municipal Affairs and Housing, Ministry of Transportation and local MPPs, began in 2014 to provide an introduction of CN and the Project, and to obtain information on regulatory processes that were required to be followed. While no formal provincial regulatory process applies to the Project, ongoing dialogue with these agencies and individuals, and others, is proposed.

Meetings with the Region of Halton, Town of Milton and Conservation Halton and others have been held to provide an introduction of CN and the Project and to identify preliminary concerns (as mentioned above), issues and requirements of the Project. Further consultation will continue as the Project progresses.

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