CN, Watco agree on sale of rail lines in Ontario, Wisconsin and Michigan

CN and Watco Cos. LLC announced today they've reached an agreement for the sale of non-core lines and assets on the Soo subdivision in Ontario, and about 650 miles of branch lines of Wisconsin Central Ltd. in Wisconsin and Michigan.

The agreement marks the conclusion of a sale process that CN announced and launched in July 2020, CN and Watco officials said in a press release. Financial terms were not disclosed.

On the Soo subdivision, the sale involves about 250 miles of track between Sault Ste. Marie and Oba, Ontario. Watco will continue freight operations as well as operate the Agawa Canyon Train Tour. Watco officials have signed a memorandum of understanding with the Missanabie Cree First Nation regarding partnership opportunities for the Algoma Central Railway.

In both the United States and Ontario, CN will continue to play a central role as the transferred segments will remain connected to its tri-coastal network, CN officials said.

The acquisition of the U.S. rail lines is subject to the Surface Transportation Board's approval.