Cape Breton Rail Line Preservation Agreement

The province and Cape Breton and Central Nova Scotia Railway Ltd. have signed a one-year preservation agreement to maintain the existing rail line between St. Peter’s Junction, near Port Hawkesbury, and Sydney.

Under the agreement, the company will not apply to abandon a portion of the rail line and the province will reimburse valid expenses up to $60,000 a month.

Repairs or improvements of the rail line will not be reimbursed, but expenses directly attributed to the line such as salaries, insurance, security and building maintenance will be covered under the agreement.

“This agreement preserves the existing rail line, which is a key component of the proposed container terminal in Sydney,” said Geoff McLellan, Minister of Business. “Government continues to work together with businesses, community and municipal leaders on economic development related to Cape Breton. Strong transportation links are a key component of building a stronger economy.”

“We are pleased to work with the Government of Nova Scotia to allow economic development initiatives like the proposed container terminal unfold,” said Louis Gravel, president of Cape Breton and Central Nova Scotia Railway. “We would like nothing more than to one day see a thriving operating railway between Port Hawkesbury and Sydney.”

The rail line between St. Peter’s Junction and Truro is not affected by this agreement.