Nova Scotia government ends subsidy for dormant portion of short line

Nova Scotia government ends subsidy for dormant portion of short line

By Trains Staff | April 5, 2024

Move comes after CN acquires stake in Cape Breton & Central Nova Scotia Railway

Map of railroad in Nova Scotia
The Nova Scotia government has ended its subsidy for the inactive portion of the Cape Breton & Central Nova Scotia Railway, shown in gray. Genesee & Wyoming

CAPE BRETON, Nova Scotia — The government of Nova Scotia has ended a subsidy for a dormant section of short line in the province because it sees no chance the line will be restored to operation any time soon, the CBC reports.

The move regarding the Cape Breton & Central Nova Scotia Railway comes after Canadian National bought a stake in the Genesee & Wyoming line last year [see
“CN acquires stake …,” Trains News Wire, Nov. 2, 2023]. Provincial Economic Development Minister Susan Corkum-Green said it could cost up to $500 million to repair the inactive portion of the line, and that when she spoke with CN officials, they indicated they were looking to invest elsewhere.

“I feel comfortable to say that there is no evidence of an imminent investment on the scale that would be required,” Corkum-Greek said Thursday.

The provincial government had paid G&W a $30,000-a-month subsidy for the last three years to keep the line in place because of a proposal to develop an intermodal terminal at the Sydney, N.S., harbor [see “Digest: MBTA extends shutdown …,” News Wire, March 26, 2021]. That project has yet to advance. Overall, the province has provided more than $18 million in subsidies over 20 years.

Cape Breton Regional Municipal Mayor Amanda McDougall told the CBC she was concerned about the end of the subside.

“Rail is such an integral part to growing our island, to growing the economy,” she said. “Even if it was symbolic at times, that subsidy meant that there was still hope and investment in what was to be our future growth.”

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