Cape Breton Rail Solution Proposed
A solution to the Cape Breton and Central Nova Scotia (CBNS) railway issue has been identified and is now before Rail America, Economic Development Minister Cecil Clarke told students and business people at Memorial High in Sydney Mines today, March 3.
"We've said all along this rail line needs a plan that makes financial sense -- there needs to be enough traffic on the line that it can operate without losing money. We have that now," said Mr. Clarke. "The business case is in keeping with the figures provided by CBNS during the Nova Scotia Utility and Review Board (URB) hearings last July."
"This is a pivotal development in a year-long struggle to keep this line operating," said Sean Burke, vice-president of Polysteel Atlantic, a long-time user of the rail service. "We're very encouraged by today's news and look forward to more good news from Rail America this week."
Mr. Clarke said government would not provide any operating subsidies to the railroad, which is run by Rail America, but the province is prepared to invest in infrastructure improvements.
"We've said all along that the taxpayer would not be operating a railway, and that stands. But we do see a role in supporting the rail infrastructure and that is what we have discussed with Rail America. The details of that support will depend upon CBNS finalizing a capital maintenance program."
"We're pleased to see the private sector has been able to work with us in identifying possible options for a solution," said MP Mark Eyking. "As governments, we've done what we said we would do, and now it's up to Rail America."
CBNS received approval from the Utility and Review Board in November to proceed with discontinuance of service and abandonment plans for the St. Peter's Junction-to-Sydney rail line.
The province has been working with customers of the line and other stakeholders to help identify additional cargo that would make the line segment sustainable.
Senior managers of Rail America are reviewing the proposal and a decision is expected this week.