New Brunswick to spend $25 million to keep northern rail line operating

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MIRAMICHI, N.B. - The New Brunswick government will provide up to $25 million to CN Rail to help maintain freight service in the northern part of the province.

Premier David Alward announced the agreement along with CN executive Sean Finn today in Miramichi.

The money will be used to repair and upgrade the rail line with work beginning in the spring.

The company will spend a comparable amount to maintain and operate the line ensuring continued freight service for 15 years on its northern and southern sections.

The sections run between Irvco and Nepisquit Junction in the north and between Catamount and Nelson Junction in the south.

CN will abandon rail operations on the 70 kilometre long middle section between Nelson Junction and Nepisquit Junction because of the cost to maintain it and a lack of freight traffic.

The section will be offered for sale in early February for a five month period to private interests and then to the municipal, provincial and federal levels of government as required under the Canada Transportation Act.

Organizations: CN Rail

Geographic location: New Brunswick, MIRAMICHI, Nepisquit Junction Canada

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