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Nova Scotia rail promoters’ selfie contest draws condemnation from railroad
G&W has the same mentality as the Class I’s when it comes to rail traffic. NO traffic is better than some traffic or no revenue is better than a little revenue. If the G&W can’t or won’t operate the line sell it. Once the rails are removed it’s gone forever. Its not a wonder this company isn’t doing as well with an operating attitude like that. I think they have gotten to large and forgotten where they (G&W) started/came from.
If revenue does not cover costs, why should they keep running?
I can’t blame G&W. The CNR Cape Breton line was one of my favorites. I traveled (travelled it, in Canada) many time in my childhood and youth. My mother was from the Sydney area. The Socialist governments have destroyed the province. The Sydney steel plant is gone. All of the coal mines are closed (in fact, they import coal, now). The 15% sales tax, and exorbitant gas prices, doesn’t help. Nova Scotia has become a ‘welfare state’, and the kids are leaving, in droves, westbound. Extremely beautiful place, but…
Michael, the revenue WAS there, but in the way of a large company who wants to drive off business in order for the short time monetary gain, G&W increased the car load prices from $5-600 to $18000. That coupled with a couple of plant closings did what G&W’s parent holding company sought, a loss of traffic, which in turn, allowed G&W to seek abandonment, in order to scrap the rail line for the short time monetary gain.
Lawrence, I can’t agree with you. Why should they run the line if they can’t make money? Even making money in the short term is important. If not enough money is coming in now then the railroad won’t be there in the long term. These lines need maintenance and if the business isn’t there to support it there is no use in upgrading or even just maintaining the lines. Railfans seem to think railroads are in existance to run trains but they are really in existance to make money. That is the prime responsibility of management of all companies. Make as much money as possible for the owners. Those coal mines and steel mills are not coming back any more than the coal mines of West Virginia or the steel mill in Bethlehem PA are coming back. The government and environmentalists will make sure of that. You can’t run a line that long on 500 cars a year. I doubt if anyone can. Might as well rip up the track for scrap value unless the taxpayers want to subsidize it which I doubt seeing how hight he taxes are in the Maritime Provinces already but that is what they get for electing the governments they have elected.
Let 'em have at it and show us the photos!
Robert, 2 things to remember about this line. First there was a maintenance subsidy from the Canadian Gov’t but the G&W chose not to use it, thus allowing the railway to deteriorate. Second, this is Canada, not the US, and Canada is a Socialist country not a Capitalist country like the US. Not everything revolves around making a profit like here in the US. Why do you suppose all the good paying jobs are being exported to Mexico or China?
If we are socialists in Canada, why did we privatize CN and allow Americans to take over CP?
Lawrence: I think a few truths are in order here. First of all Canada, like the USA, is essentially a capitalist country. It does have some “socialist” programs, most of which have the equivalents in your country. For example, in a pure capitalist economy all the highways and roads would be privately owned toll roads. But in the interest of social good they are nearly all government owned and maintained.
Yes the G&W proposed a massive rate increase. Traffic had slowed to a trickle, not due to lack of effort by the railway. The reality is that the primary industrial base disappeared and there was virtually nothing to replace it. Those high rates simply reflected the actual cost of providing rail service with only a few cars a week. That is capitalism in action.
The maintenance subsidy merely bought time while exploring for alternative sources of revenue. It covered the bare minimum to keep the line operational, not enough to make real improvements. I imagine G&W finally concluded that they were flogging a dead horse, and it was time to bury it. In your country a number of lines being abandoned were instead bought by state governments to give them another chance. Is that not the same dreaded “socialist” mentality at work?
To Lawrence - yes, all of this revolves around corporations making a profit. For how long do you throw good money after bad, in the hopes of turning things around - before you throw in the towel? As far as American jobs going to Mexico - do you know why? Because the minimum wage in Mexico is around $5/day. Does it suck - yes, completely. Can we do anything about it - no. Because it’s all about answering to the shareholders (big-money dilberts). And who are our big-money dilberts - many of them are our congressmen. Why do you think that they passed NAFTA 20+ years ago? It was because it would increase their stock dividends - with no concern for the American workers who would be affected.
Couldn’t Nova Scotia buy the abandoned portion and contract it out to an operator?
Mr. Moss: don’t loan Nova Scotia any money. You’d never get it back. They would, however, be happy to entertain a grant or a gift. Make sure strings are attached so that they would use it on the railway and not social welfare “free stuff”.
Michael: Nova Scotia could indeed buy the abandoned portion, but that would not solve the base problem, namely very little traffic. Any new contract carrier would face the same problem that the current short line had, huge losses to keep the line operational. The province only reluctantly provided what subsidies it did in the past.
It doesn’t appear this line is connect to the mainland and I see a swing bridge at Grand Narrows. Yes it would be a shame to rip it up with steel prices so low. If their was a tourist train on this very scenic line I would fancy a ride. Looks like beautiful country.