CALGARY, ALBERTA, CANADA — Canadian Pacific (CP) has entered into an agreement to acquire Central Maine & Quebec Railway (CMQ) from Fortress Transportation and Infrastructure Investors LLC (FTAI).
CMQ owns 481 miles of rail lines primarily in Quebec and Maine. The end-to-end transaction will provide CP customers access to ports at Searsport, Maine, and to Saint John, New Brunswick, via Eastern Maine Railway Company (EMRY) and New Brunswick Southern Railway (NBSR).
“This strategic acquisition gives CP a true coast-to-coast network across Canada and an increased presence in the eastern U.S.,” said Keith Creel, president and chief executive officer of CP. “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.
“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,” said Joe Adams, CEO of FTAI.
The transaction is expected to close at the end of 2019 and remains subject to customary closing conditions. Over the coming weeks, CP, FTAI and other stakeholders will move toward closing.
Canadian Pacific is a transcontinental railway in Canada and the United States with direct links to ports on the west and east coasts. CP provides North American customers a rail service with access to markets all over the globe. CP offers a suite of freight transportation services, logistics solutions and supply chain expertise.