Province Supports Cape Breton Rail Line

ECONOMIC DEVELOPMENT/TRANSPORTATION/PUBLIC WORKS--Province Supports Cape Breton Rail Line

The Nova Scotia government today filed an intervention before the Utilities and Review Board to oppose a rail line abandonment plan by Cape Breton and Central Nova Scotia (CBNS) Railway. The board has set aside two days to hear the railway's application in Sydney to abandon the Point Tupper-to-Sydney section of its operation.

"The private sector needs time to develop a business-case solution," said Cecil Clarke, Minister of Economic Development. "Our submission to the Utilities and Review Board makes a clear argument that the entire CBNS operation from Truro to Sydney is profitable and that the private sector should continue to seek a solution for the Cape Breton half of the line. The taxpayers of Nova Scotia will not be running a railway."

Ron Russell, Minister of Transportation and Public Works, said the province has worked diligently in discussions with the railway and other key players since July 2001.

"We have stressed the role they can play in improving traffic levels to ensure the continuation of the line for existing shippers and future economic activity," he said.

"We believe this issue requires not only an immediate solution, but some long-term vision," he said. "Future opportunities are out there for the railway and shippers to explore. When you consider existing Cape Breton industries, container traffic from Newfoundland, activities at the Port of Sydney, VIA Rail's passenger service and prospects for future oil and gas development off Nova Scotia -- it's the kind of potential that can help make that portion of the rail line profitable."

Both ministers say they're committed to working with Rail America, which owns the Cape Breton and Central Nova Scotia Railway, and other private firms that can play a role in resolving issues around future rail traffic. They say it's vital that all avenues be explored to meet the needs of both the railway and local shippers who rely on rail service.