Railway Cut, Thorold
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OK, the train steaming away appears to be travelling the current Trillium line heading south. Track in the centre appears to be within the bed of the current canal. Buildings along the bank towards the right could be the east side of Chapel St. The sloping rock face could be very near the west side of the Lock 7 wall, the slope itself now serving as the Canal Parkway.
During excavation of the canal, tracks were laid as close as practicable to the spoil that was carted off north to Port Weller. These track sections were frequently repositioned as excavation continued.
Thank you for your excellent comments! SE