Canadian Pacific (CP) has agreed to acquire Central Maine & Quebec Railway (CMQ) from Fortress Transportation and Infrastructure Investors (FTAI) for an undisclosed amount.
CMQ manages 774km of rail lines, mainly in Quebec and Maine. This acquisition is expected to provide CP customers with access to the ports at Searsport, Maine, as well as Saint John, New Brunswick, through the Eastern Maine Railway Company (EMRY) and the New Brunswick Southern Railway (NBSR).
FTAI will remain the owner of the tank car cleaning and repair facility Katahdin Railcar Services (KRS), and continue to operate a 12-mile branch line at its Long Ridge Energy Terminal in Ohio.
CP president and CEO Keith Creel said: “This strategic acquisition gives CP a true coast-to-coast network across Canada and an increased presence in the eastern US.
“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.”
FTAI CEO Joe Adams said: “We are excited about this transaction as it brings value to our shareholders while ensuring that the CMQ continues to provide safe and reliable rail transportation options.”
The deal is expected to be completed by the end of this year.
Last month, Regional Rail agreed to purchase the Florida operations of the Pinsly Railroad Company while First State Investments (FSI) closed its acquisition of Patriot Rail and Ports.
In August, OmniTRAX agreed to buy Cleveland Commercial Railroad (CCRL) and its wholly-owned subsidiary Cleveland Harbor Belt Railroad (CHB).