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Rail News: Short Lines & Regionals

Nova Scotia to help fund RailAmerica short line for three more years


The province of Nova Scotia recently extended a funding agreement with the Cape Breton and Central Nova Scotia Railway (CBNS) for three more years.

Owned by RailAmerica Inc., CBNS will continue to receive up to $2 million annually from the province for working capital and track maintenance costs. The funds will ensure the short line can provide service through Sept. 30, 2014, provincial officials said in a prepared statement.

“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.

Senior provincial representatives will continue to work with RailAmerica officials to explore “sustainable economic opportunities” for CBNS’ line, provincial officials said. Without provincial funding, the line would be too expensive to operate and maintain, and too costly to reinstate if it’s removed, according to RailAmerica and government officials. CBNS operates 245 miles of track between Truro and Sydney, Nova Scotia, and interchanges with CN in Truro.

“RailAmerica shares the province's interest in growing freight-rail opportunities," said RailAmerica President and Chief Executive Officer John Giles.

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More News from 10/4/2011