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The Federal Court of Appeal has dismissed a challenge to the construction of a massive rail-and-truck hub in the Greater Toronto Area, allowing the project to proceed.

In a unanimous ruling Friday, a three-judge panel found that a decision by the federal government to allow Canadian National Railway Co. CNR-T to build the terminal despite “adverse environmental effects” was reasonable.

The $250-million project aims to double CN’s existing line of tracks in Milton, Ont., and construct a hub for containers to be transferred between trucks and trains.

In March, a Federal Court decision set aside a green light issued by the government in January, 2021, and sent the project back to Ottawa for reconsideration – a ruling that has now been overturned.

The lower-court decision highlighted health concerns around air quality, pointing to the 800 diesel-powered trucks that would make daily round trips to the hub in Ontario’s Halton Region.

On Friday, the appeal court found that the government gave the thumbs-up only after giving due consideration to protecting human health, in line with environmental legislation.

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