Canadian Pacific to acquire Central Maine & Quebec Railway

Canadian Pacific has entered into an agreement to acquire Central Maine & Quebec Railway (CMQ) from Fortress Transportation and Infrastructure Investors LLC (FTAI), the companies announced yesterday.

CMQ owns 481 miles of rail lines primarily in Quebec and Maine. The acquisition will provide CP customers with seamless access to ports in 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, CP officials said in a press release.

"This strategic acquisition gives CP a true coast-to-coast network across Canada and an increased presence in the eastern United States," said CP President and Chief Executive Officer 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."

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, FTAI officials 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," said FTAI CEO Joe Adams.

The transaction, subject to closing conditions, is expected to be completed by year's end.