For over a decade, the once-bustling tracks of Cape Breton’s railway have languished, a poignant reminder of the region’s industrial past. As business leaders, such as local entrepreneur Jim Kehoe, advocate for the revival of freight train services, the potential return of rail transport could offer significant economic benefits. With the region’s economic dependence shifting towards tourism and public services, many in the business community are rallying for a revival that could reinvigorate trade and industry in Nova Scotia.
A Forgotten Legacy
The Cape Breton and Central Nova Scotia Railway once played an instrumental role in transporting coal and steel, vital components of the island’s economy for generations. However, with the decline of these industries in the early 2000s, the railway fell silent, leading to a 12 per cent drop in the region’s population over the following two decades. While recent immigration trends post-COVID-19 have started to reverse this decline, the local economy remains heavily reliant on sectors like tourism and retail.
Kehoe, who owns rope manufacturing companies in the vicinity of Sydney, the largest urban area in Cape Breton Regional Municipality, has felt the impact of the railway’s demise firsthand. “It’s really affecting our bottom line,” he lamented, highlighting the increased costs associated with transporting raw materials via truck from Port Hawkesbury, located off the mainland.
The Case for Revival
The railway spans approximately 394 kilometres from Truro, located about 80 kilometres north of Halifax, traversing the mainland and reaching Sydney. However, since 2015, train services have been largely inactive beyond Port Hawkesbury, with the remaining 157-kilometre stretch falling into disrepair. According to the railway’s current owner, Genesee and Wyoming, only 300 cars were shipped annually when operations ceased, falling drastically short of the 10,000 required for profitability.
While a 2023 study indicated that local businesses would consider shifting some shipping back to a restored railway, the numbers still do not meet the necessary threshold for economic viability. “Our population is growing, and the need for East Coast ports is growing. We’re quite confident that a business case will materialise,” stated Tyler Mattheis, CEO of the Cape Breton Partnership, an economic development agency.
Potential Partnerships and Future Prospects
Renewed hope for the railway’s future came in 2023 when CN Rail acquired a stake in the line, suggesting that integration with its broader network could lead to revitalisation. However, Tom Bateman, a spokesperson for CN, noted, “Any future investment in the unused section of the line must be supported by a clear business case.”
Public Works Minister Fred Tilley remarked that the estimated restoration cost of $120 million might be conservative, as no proponents have yet stepped forward with a concrete proposal to restart services. “I’d be happy to discuss it if that comes forward for sure,” he affirmed.
Historically, the railway has been closely tied to industrial development in Cape Breton. The first line, intended for coal transport, was established in the early 1830s. Subsequent investments in infrastructure saw the line reach its peak during both World Wars, with traffic soaring to 180 cars daily by the 1950s. However, by the late 1970s, competition from automotive transport significantly diminished demand.
The Path Forward
Various studies have suggested the possibility of new industries using the railway, including a limestone mine and increased seafood shipping. Yet, many experts believe that the railway’s success is intrinsically linked to the development of Sydney’s underutilised port. Dan MacDonald, a consulting engineer, emphasised the port’s potential: “It’s the closest [Canadian] port to Europe. It’s been dredged in 2012. The port needs the rail, and the rail needs the port.”
Plans for a container terminal in Sydney were halted earlier this year when local council negotiations with Sydney Harbour Investment Partners ceased. The proposed terminal, Novaporte, could have handled around 3.2 million containers annually, highlighting the region’s untapped potential.
Even as Halifax and Saint John maintain larger shipping capacities, Sydney could specialise in bulk cargo, including minerals and oil. Mattheis pointed out that with the global shift towards resource diversification, Sydney could become a key player in shipping Alberta’s oil and Saskatchewan’s potash eastward.
Why it Matters
The revival of the Cape Breton railway is not just about restoring a transport link; it represents a critical opportunity for economic revitalisation in a region that has faced years of decline. By reconnecting businesses to essential shipping services and leveraging the potential of Sydney’s port, Cape Breton could position itself for a brighter, more sustainable economic future. As interest in Canada’s natural resources grows, the railway’s revival could transform the landscape of trade and industry in Nova Scotia, driving progress and prosperity for years to come.
