The government of Nova Scotia has rejected a plan to develop a consolidated truck and rail corridor in Halifax.

Transportation Minister Brook Taylor says expanding what's called the rail cut to make room for trucks is just too expensive.

"There certainly would have been efficiencies if the project had have went ahead, but frankly, when you looked at the capital, it just wasn't or it isn't worthwhile," Taylor said Wednesday.

A feasibility report examining the proposed project put the cost between $205 and $270 million, even though the governing Conservatives had originally estimated the cost at $80 million.

New Democrat Leonard Preyra said the cost discrepancy shows the Conservatives are "out of touch" while Liberal Leader Stephen McNeil says the idea was "ill-conceived" from the get-go.

The proposal, which was part of the Atlantic gateway initiative, called for using existing rail lines as a route for truck and container traffic to and from the port of Halifax.

The project would have seen the railway bed paved to allow 18-wheelers to travel to and from the Halterm container terminal in the city's south end.

Sue Uteck, the city councillor who represents the south-end neighbourhood, said she was not surprised that the project has been turned down by the province, and she agrees with the decision. She wants the money that was put toward the plan to go into improving the Port of Halifax.

"There's not a person in HRM [Halifax Regional Municipality] that's not concerned for the Port of Halifax, and let's work together and find the brightest and best solution for it," she said.

The study found that the truck corridor might save 15 minutes travel time for transport trucks heading into or out of the city's downtown, but there would be almost no impact on overall traffic congestion and therefore no positive effect on decreasing greenhouse gases.

Although the study suggested the enormous cost of the project outweighed the benefits from a provincial government investment point of view, it went on went to say that it might be worthwhile for the city's transit goals.

However, Halifax Regional Municipality Mayor Peter Kelly said Wednesday he's not interested.

"If it's too expensive for the province, it's too expensive for us. If they can't do it with their budgets, and their resources, there's no way in this world we can afford it, so that would be an no go," Kelly said. "...But to spend $270 million when there's so many other demands, it would be asinine for us to go in that direction."

With files from the Canadian Press