In 1921, construction on a line north to James Bay was started. In 1923, the new Conservative premier of Ontario, Howard Ferguson, halted further construction, saying that it would be unprofitable. For four years the terminus of the line remained at Fraserdale, near Abitibi Canyon, where the Abitibi Canyon Generating Station was being built on the Abitibi River. Between 1928 and 1930 the railway was extended north at a slow pace. The pace of construction was quickened in 1930 as a make-work project due to the depression. The extension to James Bay was opened on July 15, 1932. The terminus of the railway was at the mouth of the Moose River near the old trading post of Revillon Frères. It was named Moosonee, from the Cree meaning "at the moose".