by The company that operates the rail line in Cape Breton has officially announced it intends to abandon it.
Genesee & Wyoming president Mario Brault says they’ll apply to the Utility and Review Board on Oct. 1 to shut down their Cape Breton operation.
The annual 2-million dollar provincial subsidy for the Cape Breton line expires on September 30th.
Brault says the line has continued to lose business since Genesee & Wyoming took it over, 18 months ago.
He adds they don’t feel it would be fair to ask for more money from the province for a line that doesn’t stand on its own feet from a commercial standpoint.
Brault also says the subsidy would have to increase substantially as railway infrastructure on the Island continues to age.
Meanwhile, Transportation Minister Geoff MacLellan says the province isn’t in a position to offer a large-scale subsidy.
However, he adds the current 2 million dollar annual subsidy, as well as capital upgrades remain on the table for discussion.
He says the province will use the next few months to determine what upgrades are needed on the line and their cost.