Canadian Pacific (CP) Rail has announced it has completed its acquisition of the Central Maine & Quebec Railway US Inc which is expected to expand its reach and optionality.
In a statement, CP Rail said together with the earlier acquisition of Central Maine & Quebec Railway Canada Inc. this completes CP's purchase of the entire CMQ network, which was first announced in November 2019.
"On May 4, 2020, the US Surface Transportation Board approved CP's acquisition of CMQ US, which became effective (June 4, 2020). This allows CP to integrate CMQ US's 244.2 route-miles of rail line in Maine and Vermont into CP's network," it said.
CP Rail said the transaction includes 57.3 route-miles leased from the Maine Department of Transportation and 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 Keith Creel, CP's president and chief executive officer.
"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," he added.
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 approximately 200 miles shorter than the competition, getting customer shipments from the East Coast into Montreal and Toronto faster.
More investment to raise CMQ standard
CP plans to invest as much as US$90 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 chief marketing officer.
CP reaches the Maine border using tracks that were formerly part of CMQ Canada from St-Jean-sur-Richelieu, Que. CP completed the acquisition of CMQ Canada on December 30, 2019, giving CP access to CMQ Canada's 236.8-mile route in Quebec.
CP Rail noted that CMQ US and CMQ Canada will continue to operate in the US and in Canada respectively as subsidiaries of CP.
