In the heart of Cape Breton, where the remnants of a once-thriving industrial economy linger, local business leaders are rallying for the return of freight rail services. With the Cape Breton and Central Nova Scotia Railway lying dormant for over a decade, entrepreneurs like Jim Kehoe are pressing for revitalisation to alleviate the pressures on their operations and stimulate economic growth.
A Declining Legacy
The railway, which historically served the coal and steel industries, has seen its significance diminish dramatically since the early 2000s. Industrial giants that once sustained the region have all but disappeared, leading to a staggering 12 per cent drop in population over the past two decades. Despite a recent uptick in numbers due to immigration post-pandemic, the economy remains heavily reliant on tourism, education, and public services.
Kehoe, who operates rope manufacturing businesses around Sydney, Nova Scotia’s largest municipality, expressed his frustrations about the current logistics situation. “Bringing in materials by truck from Port Hawkesbury significantly impacts our costs,” he lamented. Once a viable option, the railway now stands as a relic, overgrown and underused, with broken ties and washouts marking its decline.
Business Community’s Hope for Revival
Despite these challenges, optimism persists among local business advocates. Tyler Mattheis, CEO of the Cape Breton Partnership, believes shifting trade patterns could present a compelling case for the railway’s revival. “Our population is growing, and so is the demand for East Coast ports. We’re confident that a business case will emerge,” he stated in a recent interview.
The railway spans 394 kilometres from Truro to Sydney, but service ceased near Port Hawkesbury in 2015 due to insufficient freight volume. According to Genesee and Wyoming, the railway’s owner, only 300 cars were shipped annually, far below the 10,000 needed to keep operations viable. A recent study indicated that local businesses would be willing to shift some of their shipping back to rail, although they would still fall short of the necessary freight volume for a sustainable operation.
Potential Partnerships and Investments
A glimmer of hope appeared in 2023 when CN Rail acquired a stake in the line, raising expectations for potential investment in the neglected sections. “Future investment in the unused part of the line must be supported by a solid business case,” noted company spokesperson Tom Bateman, highlighting the need for a compelling financial rationale before any capital is deployed.
Nova Scotia Public Works Minister Fred Tilley has expressed caution regarding the estimated $120 million cost for restoration, indicating that this figure may be on the conservative side. “No proposals have come forward yet, but I’m open to discussions if they do,” he commented.
The Historical Context of Cape Breton Railways
The history of railways in Cape Breton is rich and intertwined with the island’s industrial past. As documented in Herb MacDonald’s *Cape Breton Railways: An Illustrated History*, the first railway, established in the 1830s, was a horse-drawn line transporting coal. Proposals for a rail link connecting Nova Scotia, New Brunswick, and Quebec emerged in the 1850s, but it wasn’t until 1890 that the Sydney route opened.
The railway played a crucial role during both World Wars, with coal and steel shipments at their peak. However, by the mid-1970s, the rise of the automobile and trucking significantly reduced demand, leading to the eventual decline of rail services after the closure of major industrial players like Sydney Steel and the last DEVCO coal mine in 2001.
Future Opportunities with Sydney’s Port
The potential for the railway’s revival is closely linked to the development of Sydney’s underutilised port. Consulting engineer Dan MacDonald highlights Sydney’s strategic advantage as possibly the closest Canadian port to Europe. “The port is an untapped resource that needs the railway, and vice versa,” he emphasised.
Plans for a new container terminal in Sydney have faltered, with the municipal council halting negotiations with Sydney Harbour Investment Partners earlier this year. While established ports like Halifax and Saint John have more capacity, Sydney could cater to bulk cargoes, including minerals and heavy equipment.
Mattheis points to a renewed interest in Canada’s natural resources, suggesting that commodities such as Alberta oil and Saskatchewan potash could provide viable freight opportunities. He also notes the potential for Sydney to emerge as a key logistics hub for offshore wind developments, should Nova Scotia’s ambitious plans materialise.
Why it Matters
The revival of the Cape Breton and Central Nova Scotia Railway could serve as a catalyst for economic rejuvenation in a region long affected by industrial decline. With the railway potentially providing a critical link for diverse industries and facilitating trade through the Port of Sydney, local leaders see a pathway to not only restore lost jobs but also to attract new investments. Reinvigorating this transport infrastructure could help Cape Breton reclaim its position in the regional economy, offering hope amid the challenges of modern logistics and shifting market demands.
