Provincial Progress on Cape Breton Rail Line

ECONOMIC DEVELOPMENT--Provincial Progress on Cape Breton Rail Line

Economic Development Minister Cecil Clarke said today, Dec. 12, that he is pleased with progress to date on the province's plan to preserve the St. Peter's Junction-Sydney section of the Cape Breton rail line.

"The province continues its efforts to help facilitate a private- sector solution and remains hopeful that the respective players can come to an arrangement that will keep the line open," said Mr. Clarke. "We have said all along that we recognize the importance of rail service to the Cape Breton economy, but there must be a sustainable volume of rail traffic for the line to be viable."

The province has the option of offering to assign its right to purchase the assets at net salvage value to other prospective buyers, which the minister indicated during his meeting with rail customers in North Sydney on Nov. 12. Since that time, the government has engaged the Canadian Transportation Agency to determine the net salvage value. A response is expected in January.

By offering to assign its right to another potential buyer, the province is helping to make the asset available at the most competitive price.

Members of the government caucus met with senior officials from Nova Scotia Power Inc. to discuss the rail line.

Mr. Clarke said also that the province is supporting the work undertaken by Enterprise Cape Breton Corporation to provide a market analysis of all transportation requirements -- rail, road, air and sea -- for existing and potential Cape Breton businesses. The analysis is expected to be completed in January.

Mr. Clarke will again meet with senior officials of Rail America early in the new year and further meetings are being arranged with Canadian National and Nova Scotia Power Inc.

Rail America runs the Cape Breton and Central Nova Scotia Railway. The railway has been granted permission by the Utility and Review Board to abandon the St. Peter's Junction-Sydney section of the line.