I agree with your last point. It is an odd decision to terminate the train at Oba Lake (not to be confused with Oba the settlement).
I've often thought this would be an opportunity to reinvent the service. Aside from going westward at Franz though (to places along the North Shore of Lake Superior), I'm not sure how else you go about achieving this.
I would wager residents in Sault-Ste-Marie would prefer service to Sudbury (and by extension Toronto). But that's just as difficult of a sell due to the questionable future and state of the HCRY.
I would also wager residents of Hearst would prefer train service to Timmins and points south.
Either way you go about it, restoring any passenger rail service to SSM is a difficult proposition.
We have talked about several routes that 'may' be worth having.
I am going to compare them to the gold standard of the Northlander to show their viability. I am going to list them according to what I think is the most viable compared to the Northlander
The Northlander:
Has communities and several small cities along its route.
Follows a major highway.
Anchored in a major destination for most along the route.
Multiple buses follow the route every day.
A concerted push to restore service has been around since it shut down.
The line is owned by the government of ON for most of it.
SSM - Sudbury - North Bay(Toronto)
Has communities and 3 of the 5 largest cities along the route.
Follows a a major highway.
Could be anchored in Toronto, which would be a major destination for most people along the route.
The bus situation is interesting. If we include the buses along 69, then you have multiple buses along some of the route a day. SSM - Sudbury only has one bus a day.
Not much of a push locally to get it.
The line is owned by either HCR/OVR/CPKC(?). However, they constantly since their inception do ask for provincial funding. These lines might get bought like the Newmarket sub was.
(Winnipeg)Thunder Bay - Sudbury - North Bay(Toronto)
Has the 2 largest communities of Northern ON on it.
Follows a major, mainly isolated highway.
Could be anchored in Winnipeg and Toronto which would be a major destination for those along the route.
Ignoring south/east of Sudbury, there is 1 bus a day, sort of. West of Thunder Bay it alternates between 11 and 17. There is the existing Budd service between Sudbury and White River.
There is a push by a local MP, albeit, one on the opposition.
This line west of Sudbury is owned by CPKC and has high congestion with freight.CPKC seems to not want to have passenger service on their line getting in their way.
Bear Train: SSM - Oba Lake(Hearst - Cochrane)
Has a major city at one end. On the existing proposal, there isn't anything to anchor it. This may make crewing it a challenge. due to rest requirements.
Doesn't really follow a highway and runs though very isolated areas with lack of road accessibility.
If built out to Cochrane, it may become useful for those traveling locally in the north, especially to Timmins.
There is currently only the Agawa Canyon Tour Train which does not accept any passengers not part of the tour.
There is a push by FN communities to put it in.
The line is owned by Wabco. The condition is poor beyond the area the Agawa Canyon Tour Train operates in. The crossing at Franz has been removed.
Some routes I have not added:
The Canadian
Via needs a mandate to add service.
Anything along the CPKC/CN route through Parry Sound.
Too congested to even consider it. Also a reason that the Canadian may never see more frequency.
Abandoned Ottawa Valley route
Not on anyone's radar and unless there was a push for freight service, not viable.