RaiLink Canada, a subsidiary of RailAmerica, has entered into a long-term deal with the Canadian Pacific Railway to operate a portion of the Ottawa valley railway line in Canada.
RailAmerica had terminated its lease with Canadian Pacific over the Ottawa valley line in December 2009.
Under the termination deal, the company has continued to operate 157 miles of the line between Sudbury and Mattawa in Ontario, and between Mattawa and Temiscaming in Quebec for an interim period of time.
RailAmerica will continue to operate segments of the line for five years, with an option for further extension.
The company expects the agreement to result in a positive contribution to net income.
The line primarily transports pulp, paper and allied products.