HALIFAX — The company planning to cut rail freight service in Cape Breton says the Nova Scotia government should invest in railways, a wire service reported.
The Cape Breton and Central Nova Scotia Railway says it approached the province for financial aid in 1999.
The company wanted $2 million to $3 million to help build a spur line about 40 kilometres east of Port Hawkesbury, N.S. But general manager Peter Touesnard said Tuesday the province rejected the idea.
Transportation Minister Ron Russell said the province doesn’t have a lot of money. And he added the government does not have the expertise to get involved in railways.
The rail company wants to abandon service in Cape Breton and provincial regulators have scheduled public hearings for May 29. Touesnard said the company has no choice because its main customers in Cape Breton — Sydney Steel and the coal mines — are out of business.
Touesnard appeared before a legislature committee Tuesday and said the province should spend money to build rail lines. He said that would reduce truck traffic on highways and cut road maintenance costs.