10/08/2014 09:46 EDT | Updated 12/08/2014 05:59 EST

Company applies to abandon freight service in Cape Breton, citing money loss

HALIFAX - The U.S.-based company that owns a money-losing rail line in Nova Scotia has applied to abandon a portion of its freight service in Cape Breton.

Genesee and Wyoming says it has filed a discontinuance and abandonment application with the province's Utility and Review Board to end service between Point Tupper and Sydney.

The company says a provincial subsidy wasn't enough to make up for its losses.

Their application indicates they plan to end their service by Dec. 31.

The provincial government has created an advisory committee in hopes of finding ways to increase traffic and improve the business case for a private operator to take over the line.

An interim report is due to the government in December, with a final report expected next spring. (CIGO)