Canadian Pacific and Fortress Transportation and Infrastructure Investors (FTAI) announced they have entered into a definitive agreement whereby CP will acquire the Central Maine & Quebec Railway (CMQ).The transaction is expected to close by the end of this year.
CMQ owns 481 miles (774 kilometres) of rail lines primarily in Quebec and Maine. The end-to-end transaction will provide CP customers with seamless, safe and efficient access to ports at Searsport, Maine and to Saint John, New Brunswick, via Eastern Maine Railway Company (EMRY) and New Brunswick Southern Railway (NBSR), thereby preserving and enhancing competition.
« This strategic acquisition gives CP a true coast-to-coast network across Canada and an increased presence in the eastern U.S., » said CP President and CEO Keith Creel. « With additional port access, more dots on the map, and our proven precision scheduled railroading operating model we are confident this transaction will bring benefits to all stakeholders moving forward. »
As part of the transaction, FTAI will retain ownership of Katahdin Railcar Services (KRS), a tank car cleaning and repair facility, and the contract to operate at a 12-mile branch line at FTAI’s Long Ridge Energy Terminal in Monroe County, Ohio. FTAI intends to continue to develop and grow both the KRS and Long Ridge branch line businesses. (Photo Mike Peverett/CMQ)