CN moves forward after acquiring stake in Cape Breton & Central Nova Scotia Railway
CAPE BRETON, Nova Scotia — The Nova Scotia government has ended subsidies for the dormant section of the province's Short Line because it doesn't think there's a chance the line will return to service anytime soon, CBC reports. Reported.
The move regarding the Cape Breton and Central Nova Scotia Railway comes after Canadian National bought a stake in the Genesee and Wyoming line last year. [see
“CN acquires stake …,” Trains News Wire, Nov. 2, 2023]. Provincial Economic Development Minister Susan Corkum Greene said that repairing the inactive portion of the line could cost up to $500 million, and that she has spoken with CN officials and is considering investing elsewhere. It has been shown that there is.
“We can safely say that there is no evidence of imminent investment of the scale required,” Corkum-Greek said on Thursday.
The state government has paid G&W a $30,000 monthly subsidy for the past three years to maintain the line due to a proposal to develop an intermodal terminal at the port of Sydney, New South Wales. [see “Digest: MBTA extends shutdown …,” News Wire, March 26, 2021]. That project has not progressed yet. Overall, the state has provided more than $18 million in grants over her 20 years.
Cape Breton Regional Mayor Amanda McDougall told CBC she is concerned about the end of the subsidence.
“Rail is such an essential part of the growth of our island and the growth of our economy,” she said. “Even if it was symbolic, that grant meant there was still hope and investment in our future growth.”
