Canadian Pacific (CP) has entered into a definitive agreement to acquire the Central Maine & Quebec Railway (CMQ) from Fortress Transportation and Infrastructure Investors LLC (FTAI). The transaction is expected to close at the end of 2019 and remains subject to customary closing conditions.
CMQ owns 481 miles of rail lines primarily in Quebec and Maine, which will provide CP customers with access to ports at Searsport, Maine, and to Saint John, New Brunswick, via Eastern Maine Railway Company and New Brunswick Southern Railway.
"This strategic acquisition gives CP a true coast-to-coast network across Canada and an increased presence in the eastern U.S.," said Keith Creel, CP president and CEO. "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 Service, 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 the KRS and Long Ridge branch line businesses.
FTAI CEO Joe Adams 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."