For over ten years, the once-bustling railway tracks of Cape Breton have remained silent, a stark reminder of the decline of the island’s industrial economy that once thrived on coal and steel. However, optimism is growing among local business leaders like Jim Kehoe, who are advocating for the return of freight services to invigorate the region’s economy. Kehoe, who operates rope manufacturing companies in the Sydney area, laments the impact of relying solely on trucks for transporting raw materials, stating, “It’s really affecting our bottom line.”
The Historical Significance of the Cape Breton Railway
The Cape Breton and Central Nova Scotia Railway has historically been a crucial artery for the region, facilitating the transport of coal and steel for generations. The decline of these industries began in the early 2000s, leading to a staggering 12 per cent population decrease over the following two decades. While recent immigration trends following the COVID-19 pandemic have sparked some population recovery, the local economy still heavily depends on tourism, retail, education, and public services.
Despite the presence of the railway tracks, many sections are now overgrown and in disrepair, with broken ties and washouts prevalent. The business community is rallying for a revival, hoping that shifting trade patterns might attract a significant customer back to the line. Various industries, including Alberta oil and Saskatchewan potash, have been considered as potential freight sources, yet no solid proposals have emerged.
Potential for Economic Growth Amidst Challenges
Tyler Mattheis, CEO of the Cape Breton Partnership, remains optimistic about the railway’s future. “Our population is growing, the need for East Coast ports is growing, and we’re quite confident that a business case will materialize,” he remarked. The railway spans 394 kilometres from Truro, situated approximately 80 kilometres north of Halifax, across the mainland to Sydney. However, since freight services ceased near Port Hawkesbury in 2015, only a small segment of the line remains operational.
The last stretch of the railway, approximately 157 kilometres, has seen disuse, with the former owner Genesee and Wyoming reporting a sharp decline in freight volume. Previously shipping 10,000 cars annually, the service fell to just 300 cars per year when operations halted. A recent study indicated that while local businesses would consider transporting goods via a restored railway, they would still fall short of the necessary freight volume.
In a bid to rekindle hope, CN Rail acquired a stake in the railway in 2023. The company is currently working to interconnect the active portion of the railway with its broader network. “Any future investment in the unused section of the line must be supported by a clear business case,” said spokesperson Tom Bateman.
The Need for Investment and Infrastructure
Nova Scotia’s Public Works Minister, Fred Tilley, has indicated that the estimated restoration cost of £120 million may be underestimated. He noted that no proposals have yet been submitted to initiate a restart of the service, stating, “I’d be happy to discuss it if that comes forward for sure.”
Historically, rail transport has been integral to Cape Breton’s industrial landscape, with roots dating back to the early 1830s. While railway traffic peaked during World War II and continued robustly into the 1950s, a significant downturn followed the closure of Sydney Steel and the last coal mine in 2001. Although various studies have explored potential new industry partnerships, such as a limestone mine or an increased focus on seafood shipping, many experts argue that the railway’s resurgence hinges on the development of Sydney’s underutilised port.
The Untapped Potential of Sydney’s Port
Dan MacDonald, a consulting engineer, highlights the Port of Sydney as a vital but underleveraged resource. “It’s the closest [Canadian] port to Europe,” he noted, emphasising the strategic advantages of the port, which underwent dredging in 2012. Despite longstanding ambitions for a container terminal, negotiations for a significant project dubbed Novaporte were halted earlier this year.
The competitive landscape is complicated by established ports in Halifax and Saint John, New Brunswick, both of which have ample capacity. Additionally, the ongoing expansion of the Port of Montreal poses further challenges. Nevertheless, MacDonald asserts that while Halifax may excel in container shipping, Sydney could thrive in bulk cargo transport for minerals, oil, and heavy equipment.
Amidst renewed interest in Canadian natural resources, Mattheis points out that opportunities abound for Sydney. He references Alberta’s plans to ship oil eastward and the potential for Saskatchewan potash to follow suit. Furthermore, the establishment of a Canadian Coast Guard base for Arctic operations in Sydney could present additional business prospects. As Nova Scotia explores offshore wind development, Sydney may serve as a key hub for turbine component transport.
Why it Matters
The revival of the Cape Breton railway is not just a matter of restoring a transport route; it represents a critical opportunity for economic revitalisation in a region long dependent on dwindling industries. By fostering new partnerships and leveraging local resources, the railway could serve as a linchpin for growth, connecting Cape Breton to broader markets and potentially reversing decades of decline. In a rapidly changing economic landscape, the success of this initiative could redefine the future of the island, making it a pivotal player in Canada’s evolving resource economy.
