Minister Welcomes CBNS' Decision to Accept Proposal

ECONOMIC DEVELOPMENT--Minister Welcomes CBNS' Decision to Accept Proposal

Economic Development Minister Cecil Clarke welcomed today's decision by the Cape Breton and Central Nova Scotia Railway (CBNS) to keep the St. Peter's Junction-to-Sydney segment of the line open.

"The decision is in and it's good news for Cape Breton. We have a railway," said Mr. Clarke. "We said there needed to be sufficient traffic to sustain the line and we, together with our partners in business and the federal government, worked very hard to identify that traffic. CBNS' decision to accept the proposal coordinated by the province is a testament to the proposal's viability."

The proposal, which includes commitments of increased cargo traffic and/or other support from a number of interests, including Nova Scotia Power, Canadian National, Via Rail, AMCI, and the federal and provincial governments, achieves the 5,000 rail car breakeven number that the railway said it needed to keep the line open.

"By addressing the traffic shortfall which is what the province was asked to do CBNS can now focus on exploring longer term growth opportunities from existing customers, Cape Breton coal, mineral deposit developments and offshore oil and gas, among others.

Earlier today, CBNS announced its acceptance of the proposal. The company will advise the Nova Scotia Utility and Review Board (URB) later this week of its intent to withdraw its discontinuance and abandonment plans.

In November 2002, the railway company received approval from the URB to discontinue service in April 2003 and abandon the line the following month.