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Canadian National Railway Co. Feb. 20 began divesting the international holdings of Wisconsin Central Transportation Corp., which the Class I acquired Oct. 9, by selling all of its 23.7 percent stake (more than 28 million shares) in Tranz Rail Holdings Ltd. to various local and international institutions for about $44 million.
CN officials believe the sale of New Zealand-based Tranz Rail, which offers freight rail, trucking, ferry, warehousing, distribution and logistics-management services, won't affect the Class I's income statement because Tranz shares were classified "available for sale" as part of the WC transaction.
Now that CN has sold its Tranz Rail interests, the Class I soon might turn its attention to selling off long-troubled English Welsh & Scottish Railway (EWS).
"CN's position — as it has been all along — is that it will divest its holding in the railway, and that the timing of that decision will be guided by the pace of the turnaround at the carrier," says CN spokesman Mark Hallman.
— Jeff Stagl