Canadian Pacific closes sale of Central Maine & Quebec Railway network
CANADIAN Pacific has completed the acquisition of the entire Central Marine & Quebec (CMQ) railway network, which was first announced in November 2019
11 June 2020 - 19:06
The railway announced that it has completed its previously announced acquisition of the Central Maine & Quebec Railway US Inc (CMQ US). It had earlier acquired Central Maine & Quebec Railway Canada Inc (CMQ Canada).
The railway said CMQ US and CMQ Canada will continue to operate in the US and in Canada respectively as subsidiaries of CP.
With the completion of the deal, CP it to integrate CMQ US's 244.2 route-miles of rail line in Maine and Vermont into its network. The transaction also includes 57.3 route-miles leased from the Maine Department of Transportation. With the CMQ acquisition, CP is now a 13,000-mile rail network connecting the Atlantic coast to the Pacific coast across six Canadian provinces and 11 US states.
'This transaction is a generational business opportunity for CP,' said CP president and CEO Keith Creel. 'It enables us to serve customers through a larger coast-to-coast network across Canada and brings a direct Class 1 freight-rail service to the State of Maine for the first time in decades. It is with great pride that I formally welcome CMQ's US employees and customers to the CP family.'
CMQ's network links CP directly to the Atlantic Ocean port of Searsport, Maine, and to Port Saint John in New Brunswick through connections with Eastern Maine Railway and New Brunswick Southern Railway. As a result, CP now has access to a route that is 200 miles shorter than the competition, getting customer shipments from the east coast into Montreal and Toronto faster. CP plans to invest as much as C%90 million (US$66.6 million) over the next three years to bring CMQ's rail infrastructure up to Federal Railroad Administration Class 3 standards.
'Today's expansion of the CP network creates opportunities to move products in literally every line of business in our portfolio,' said John Brooks, CP's executive vice-president and CMO. 'Through the precision scheduled railroading model and the commitment of our people, we will unlock new potential for business and industry across this region and beyond.'
CP reaches the Maine border using tracks that were formerly part of CMQ Canada from St-Jean-sur-Richelieu, Quebec. CP completed the acquisition of CMQ Canada on December 30, 2019, giving CP access to CMQ Canada's 236.8-mile route in Quebec.
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