FTAI agrees for CP to acquire Central Maine and Quebec Railway
The transaction agreement between Canadian Pacific and Fortress Transportation and Infrastructure Investors is expected to close by the end of 2019.
Credit: www.cmqrailway.com / Mike Peverett
Canadian Pacific (CP) and Fortress Transportation and Infrastructure Investors LLC (FTAI) have entered into an agreement stating that Canadian Pacific will acquire the Central Maine and Quebec Railway (CMQ), spanning a total of 481 miles of rail lines.
The transaction will allow Canadian Pacific to provide passengers with a seamless, safe, and efficient access to ports at Searsport and Maine, and to Saint John and New Brunswick through the Eastern Maine Railway Company (EMRY) and New Brunswick Southern Railway (NBSR) – simultaneously preserving and enhancing competition.
Keith Creel, Canadian Pacific President and CEO, said: “This strategic acquisition gives CP a true coast-to-coast network across Canada and an increased presence in the eastern U.S. 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.”
The agreement states that, though Canadian Pacific will acquire the CMQ Railway, Fortress Transportation and Infrastructure Investors will retain ownership of and subsequently develop Katahdin Railcar Services – a tank car cleaning and repair facility – and the contract to operate at a 12-mile branch line at FTAI’s Long Ridge Energy Terminal in Monroe County, Ohio.
CEO of Fortress Transportation and Infrastructure Investors, 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.”
The transaction between the two companies is expected to close at the end of 2019, but remains subject to customary closing conditions.