Nova Scotia railway signs new coal contract

STELLARTON, N.S. (April 11, 2003) — RailAmerica, Inc. today announced that its Canadian subsidiary has entered into a transportation agreement with customers in Nova Scotia.

RailAmerica’s Cape Breton & Nova Scotia Railroad (CBNS) has signed a new transportation agreement with American Metals & Coal, Inc. (AMCI) to move 4,000 carloads of coal from Sydney, N.S. to the Nova Scotia Power plant in Trenton, N.S. The one-year contract is expected to generate approximately $1 million in revenue in 2004 and has the potential for additional revenue thereafter, the company said. CBNS also entered into an agreement facilitated by the province to continue rail operations on this portion of its rail line, which was previously approved and scheduled for abandonment. The agreement guarantees rail service at least until the end of 2004 for CBNS’ 18 current customers on the eastern part of the railroad.

In addition to facilitating a deal between CBNS, Canadian National (CN), VIA Rail Canada, Nova Scotia Power and AMCI, the province and the federal government, have agreed to fund nearly $1 million in capital improvements for CBNS over the next two years.

The CBNS operates 245 miles of rail line from Truro to Sydney, N.S. The railway was acquired by RailAmerica in early 2000 as part of the acquisition of RailTex, Inc.

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