CN Buys Rail & Ferry Operations From Quebec Railway Corp

Discussion in 'The Real Thing- North America' started by railwaybob, Nov 3, 2008.

  1. railwaybob

    railwaybob Member

    CN buys rail and ferry operations from Quebec Railway Corp. for
    $49.8 million
    Mon Nov 3, 9:25 AM
    The Canadian Press Email Story IM Story Printable View
    By The Canadian Press

    MONTREAL - Canadian National Railway Co. (TSX: CNR.TO) is buying a number of rail and ferry operations from Quebec Railway Corp. for $49.8 million.

    CN said Monday it will acquire three railway operations and a rail-freight ferry operation, plus 540 track miles of rail line it formerly owned in eastern Ontario, eastern Quebec and northern New Brunswick plus a ferry service on the St. Lawrence River.

    The freight carrier sold the rail lines to Quebec Railway in the late 1990s and has held a minority equity interest in the ferry operation since its startup in 1975.

    "The operations we're buying are important to CN because QRC is our second-largest short-line partner, serving important customers at origin and directly feeding our main-line network," CN president and CEO Hunter Harrison said in a release.

    "QRC has done a great job with these rail properties, and we believe can improve on that in future."

    "With our close partnership over the years, CN was the logical purchaser of these properties after QRC decided to dispose of key assets," said Quebec Railway chairman Pierre Martin.

    "We believe CN will build on our sustained customer focus to deliver even better service in future."

    Quebec Railway will keep its Sydney Coal Railway Inc. subsidiary in Sydney, N.S., and its Chemin de fer de Charlevoix inc. unit running east of Quebec City to Clermont, Que.

    Properties involved in the deal are:
    - Chemin de fer de la Matapedia et du Golfe
    -New Brunswick East Coast Railway
    -Ottawa Central Railway
    -Rail ferry firm Compagnie de gestion de Matane inc. (COGEMA).

    CN said it plans to invest capital over the next three years to upgrade the rail lines and will replace the existing locomotive fleet with more modern motive power. The company does not plan any changes to freight, VIA Rail passenger rail service or employment levels.

    The deal affects about 214 employees of Quebec Railway.

    CN will also take on the operation and management contract for the Chemin de fer de la Gaspesie, which runs from Matapedia to Gaspe, Que.
  2. Squidbait

    Squidbait Recovering ALCO-holic

    Interesting that they're buying back the Ottawa Central. I wonder if they now regret ripping up their tracks from North Bay to Ottawa?
  3. railwaybob

    railwaybob Member

    Rumour has it - and these are only rumours - that CN will be running over CP Rail's Chalk River sub between Sudbury and Pembroke where they will then switch over to CN's/ Ottawa Central's Beachburg sub into Ottawa. If this is the case, then CP will have to put in Continuous Welded Rail between Sudbury and Pembroke (rumour has it that there are CWR trains currently on CP Rail's Chalk River sub), and CN will have to install CWR on the Beachburg sub.

    CN would then run over VIA Rail's (formerly CN's) Alexandria sub to Coteau Junction where they would connect with CN's Kingston sub. VIA is currently installing CWR on the Alexandria sub on the parts where they don't have CWR.

    At least, that's the rumour.

    Bob M.
  4. TinGoat

    TinGoat Ignorant know it all


    What's that you say? sign1

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