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Canadian Pacific and Borealis Infrastructure Management Inc. have reached an agreement to change their joint ownership of the Detroit River Tunnel Partnership (DRTP) by making Borealis the majority owner.

Subject to regulatory approval, CP will retain its exclusive right to operate and maintain the Detroit River tunnel, but the Class I’s ownership interest will decrease from 50 percent to 16.5 percent. The transaction calls for CP to receive $110 million plus an additional $22 million based on future freight volume through the tunnel.

DRTP owns the Detroit River Rail Tunnel, which carries CP's line from Windsor, Ontario, to Detroit. In 1985, CP and CN purchased the tunnel from Conrail; in 2000, CN sold its half ownership stake to Borealis.

"This transaction allows us to realize value for our asset and strengthen our balance sheet, while preserving our right to operate the tunnel,” said CP Executive Vice President and Chief Financial Officer Kathryn McQuade in a prepared statement.