Province Extends Rail Agreement, Supports Cape Breton Businesses

The province is supporting businesses and jobs in Cape Breton that rely on rail service, by extending the current agreement with the Cape Breton and Central Nova Scotia (CBNS) Railway.

Funding to maintain the line will continue for an additional three years, ensuring CBNS Railway will offer service through Sept. 30, 2014.

"This rail line is vital for keeping shipping costs low, and helping Cape Breton businesses remain competitive in the global marketplace," said Premier Darrell Dexter. "Our investment will preserve a key piece of transportation infrastructure for the future of the region."

Under the agreement, Rail America-operated CBNS can continue to access up to $2 million annually for working capital and maintenance costs.

"We value our customers and the long-standing partnership we've had with the province," said John Giles, RailAmerica president and chief executive officer. "RailAmerica shares the province's interest in growing freight-rail opportunities."

Senior provincial representatives will continue to work with RailAmerica to explore sustainable economic opportunities for the rail line.

Without this investment, the rail line would be too expensive to operate and maintain. If it was removed, it would be very costly to reinstate.

The railway is also more environmentally efficient, generating less air pollution than moving materials by air or by truck transport. Rail uses about half the fuel of trucking, and results in reduced highway infrastructure maintenance.