Canadian Pacific Railway and Borealis Infrastructure have entered into a transaction that, subject to regulatory approval, would change their joint ownership of the Detroit River Tunnel Partnership (DRTP) to a majority position for Borealis.
CP retains its exclusive right to operate and maintain the Detroit River tunnel; however, CP's interest will decrease to 16.5 percent from 50 percent with the completion of the transaction. CP's proceeds from the transaction will be $110 million plus additional proceeds of $22 million based on future freight volume through the tunnel.
The DRTP owns the Detroit River Rail Tunnel which carries CP's rail line from Windsor to Detroit. The tunnel, which transports rail traffic across the Canada-U.S. border, is a vital link in North American transportation infrastructure.