In Cape Breton, Nova Scotia, the sound of freight trains has long faded, leaving behind a legacy of once-thriving industries that shaped the region’s economy. For over a decade, disused railway tracks have become a reminder of the decline in the coal and steel sectors that were pivotal to the island’s prosperity. However, local entrepreneurs like Jim Kehoe remain optimistic, advocating for the return of freight services to address the logistical challenges faced by businesses and breathe new life into the economy.
The Decline of a Key Economic Driver
The Cape Breton and Central Nova Scotia Railway historically served as a vital conduit for coal and steel, supporting industries that provided livelihoods for generations. As these sectors dwindled in the early 2000s, the railway’s importance diminished, contributing to a 12 per cent population decline over two decades. Although recent immigration trends have begun to reverse this trend, the region’s economy is now heavily reliant on tourism, retail, education, and public services.
Kehoe, who operates rope manufacturing companies in the Sydney area, emphasises the current struggles faced by local businesses due to the lack of rail transport. Historically, raw materials were transported by train, but now truck shipments from Port Hawkesbury are essential for deliveries to Sydney, a route spanning 130 kilometres. “It’s really affecting our bottom line,” Kehoe stated, underscoring the urgency for revitalisation.
A Glimmer of Hope for Freight Services
Despite the challenges, there is a renewed push from the business community to resurrect the railway. With shifting trade patterns and the prospect of new customers, stakeholders believe that a compelling business case could emerge. Potential freight opportunities include Alberta oil, Saskatchewan potash, and locally mined products, although no concrete proposals have yet materialised.
Tyler Mattheis, CEO of the Cape Breton Partnership, is optimistic about the railway’s potential. “Our population is growing, the need for East Coast ports is growing, and we’re quite confident that a business case will materialise,” he said, hinting at the possibilities that lie ahead.
The railway spans 394 kilometres, connecting Truro, approximately 80 kilometres north of Halifax, to Sydney. However, since 2015, service has been largely halted, with only a paper mill near Port Hawkesbury still utilising the tracks. The remaining 157 kilometres are now virtually abandoned. The owner, Genesee and Wyoming, previously cited an unsustainable shipping volume of just 300 cars per year, far below the 10,000 needed for profitability.
Infrastructure and Investment Challenges
In 2023, a study indicated that while local businesses would consider using a restored railway, they would still be several hundred cars short of the necessary volume to justify revival. Public Works Minister Fred Tilley acknowledged that the estimated restoration cost of $120 million may be underestimated, with no proposals currently on the table to restart services. “I’d be happy to discuss it if that comes forward for sure,” he stated, reflecting a willingness to engage with potential investors.
The railway’s storied past is intertwined with Cape Breton’s industrial heritage. From its inception in the early 1830s, when horse-drawn cars transported coal, to its peak during both World Wars and into the 1950s, rail transport has played a critical role in the region’s economy. However, competition from road transport and the closure of key industries in the early 2000s led to a gradual decline, with the last remnants of rail service ceasing in 2015.
The Future: Ports and Potential
Several studies have explored future opportunities for the railway, including the development of a limestone mine or a green concrete operation. Additionally, the possibility of increased seafood shipping has been discussed. However, the railway’s future is likely linked to the potential expansion of Sydney’s underutilised port.
Dan MacDonald, a consulting engineer, expressed optimism about the Port of Sydney, describing it as one of Canada’s most promising resources. “It’s the closest [Canadian] port to Europe,” he noted, highlighting the strategic advantage the port could offer if rail services were restored. Plans for a container terminal in Sydney have faced setbacks, with the municipal council halting negotiations with proponents earlier this year.
While established ports like Halifax and Saint John, New Brunswick, are well-equipped for container shipping, Sydney may have an edge in handling bulk cargo such as minerals and heavy equipment. Mattheis believes that as Canada seeks to diversify its export markets, renewed interest in natural resources could present opportunities for Sydney. “These are existing industries with existing markets that are changing rapidly with changing geopolitics,” he added.
Why it Matters
The potential revival of Cape Breton’s railway is not just about restoring a transport link; it represents a broader ambition to restore economic vitality to a region that has seen significant decline. With the right investments and business strategies, the railway could once again become a cornerstone of the local economy, fostering growth in various sectors and creating jobs. As the landscape of trade and industry evolves, the railway’s revival could serve as a linchpin for Cape Breton’s future, transforming the island’s economic prospects while honouring its rich industrial heritage.
