More bad news for Dalhousie as CN puts rail line up for sale

The economically troubled town of Dalhousie, N.B., could be facing another loss after being informed by CN that the company is selling its rail line through the northern community.

A CN spokesperson said the closure of a paper mill and chemical plant last year eliminated its only customers in Dalhousie.

If the line is not purchased by 2012, the tracks that have run through the northern town since 1883 will be dismantled.

Dalhousie Mayor Clem Tremblay is urging CN to keep the rail line in place.

"It's a very important tool for diversification because we are promoting the things that we have," Tremblay said.

"But if the railroads are going to be dismantled and abandoned coming into Dalhousie, that will make it very difficult to attract businesses coming in to the Port of Dalhousie as well as the town of Dalhousie."

The town of 3,600 watched its AbitibiBowater mill shut its doors throwing 330 people out of work in January 2008 and two months later witnessed Olin Corp. close two of its chemical plants, eliminating another 100 jobs.

Tremblay said the rail line is part of his plan to revive Dalhousie's economy.

Chris Winchester, the chairman of Port of Dalhousie, said losing the rail line would be devastating.

"We see it as a tool that we need to bring business to the area, economic development to Dalhousie and local communities," he said.

"And without this tool it's just another nail in our coffin to quiet down the north shore and not see any progress."

CN has told the town that if a company sets up in Dalhousie that would use the rail line, it will reconsider its decision.