Minister Meets with Sydney Rail Users

The provincial government will make the Point Tupper-to-Sydney rail line available to potential buyers at the most attractive price possible if the current owner proceeds with plans to shut down the service.

Economic Development Minister Cecil Clarke made the announcement this morning in North Sydney during a meeting with commercial users of the line. Mr. Clarke called the meeting to discuss the province's next steps in helping to identify potential solutions for maintaining rail service following the Utility and Review Board approval of Rail America's application to discontinue and abandon service.

Under the Nova Scotia Railway Act, Rail America is required to offer to sell its assets to the province at net salvage value.

"We're prepared to assign our right to purchase at net salvage value to other prospective buyers," said the minister. "That way, the province can help facilitate a business case by making the line available at the most competitive terms possible."

The province is engaging the Canadian Transportation Agency as a third party to determine an accurate assessment of the net salvage value of the assets. The assessment is expected to be available in January.

"We've said from the beginning that government will not be in the business of subsidizing a railroad," said Mr. Clarke. "But we are not prepared to give up our efforts at keeping the line open as long as we believe that there may be an opportunity for a private company to operate it."

The province and the federal government, through Enterprise Cape Breton Corporation, will also conduct a market analysis of the requirements for rail versus other modes of transport for existing and projected Cape Breton business. The study will detail the costs of the alternatives and the impact on companies.

"I look forward to working with Mr. Clarke in investigating all possible options for transporting goods over Cape Breton," said Mark Eyking, MP for Sydney-Victoria. "And I am looking forward to getting back to users of the line in January with the results of the analysis."

"The long-term viability of this rail line depends upon a sufficient volume of traffic -- the service can and will only continue if there is sufficient demand from users," said Mr. Clarke.