News release

Province Funds Rail Line Capital Repairs, Supports Local Businesses

Economic and Rural Development and Tourism (Jan. 2011 - April 2015)

The province will continue to support businesses and jobs in Cape Breton that rely on rail service, by providing funding for capital repairs to the Cape Breton and Central Nova Scotia (CBNS) Railway.

The Rail America-operated railway will use the $3.3 million investment to complete significant repairs and maintenance to the rail infrastructure to prevent deterioration, including bridge improvements and repairs to the Sydney facilities.

"The rail line in Cape Breton is an important transportation link for the island and for the province," said Percy Paris, Minister of Economic and Rural Development and Tourism. "If you're going to have a railway, you have to have a certain level of reliability as well, and this investment ensures that."

Investing in the rail line will positively impact long-term economic development and sustainability in the region.

Cape Breton companies regularly transport goods and materials on the rail line. It helps them be productive, innovative and globally competitive, which are key priorities of jobsHere, the plan to grown the economy.

"We are pleased to have the support of the province so we can continue to focus on quality rail service to our customers in Nova Scotia," said Shannon Toner, Cape Breton and Central Nova Scotia Railway general manager. "The Cape Breton and Central Nova Scotia Railway plays an important role in moving goods that are critical to the economy."

Without the province's investment, the rail line would be too expensive to operate and maintain. If the tracks were allowed to deteriorate or were removed, rebuilding would not be feasible.

In addition to the capital repairs, the province extended its existing agreement with Cape Breton and Central Nova Scotia Railway in September 2011, enabling the company to access $2 million a year over three years for working capital and maintenance costs.

The Cape Breton and Central Nova Scotia Railway is part of the RailAmerica family of railroads that own and operate short-line and regional freight railroads in North America, operating a portfolio of 43 individual railroads with about 7,400 miles (nearly 12,000 kilometres)of track in 27 U.S. states and three Canadian provinces.