News release

Cape Breton Rail Vital to Economic Future

Economic Development (Aug. 1999 - Jan. 2009)

Cape Breton will keep an important building block for its continued economic success thanks to a funding agreement with the province announced today, Sept. 22.

Cape Breton and Central Nova Scotia Railway Limited will continue to operate the railway line between St. Peter's Junction and Sydney thanks to the $10-million agreement.

"We are strengthening our economic future by investing in this important Cape Breton transportation infrastructure," said Premier John Hamm. "This investment will support the hard-working men and women of Cape Breton who use the rail line to run successful businesses."

The agreement provides up to $2 million per year over five years to cover operating losses and capital-maintenance expenditures incurred by the St. Peter's Junction-to-Sydney section of the company's rail line.

"The agreement preserves an important shipping line, and is built on potential new markets that would make the line sustainable, especially in the mineral-resource sector," said Energy Minister Cecil Clarke, on behalf of Economic Development Minister Ernest Fage.

"We are very optimistic about new customers and will be exploring these opportunities energetically through a concentrated marketing effort," said Peter Touesnard, assistant general manager of the railway.

The rail company had applied for abandonment of the line running from St. Peter's Junction to Sydney. The company has since withdrawn its application.