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Rail News: Canadian National Railway - CN

CN to acquire Massena rail line from CSX


CN announced yesterday it has signed an agreement to acquire from CSX the 220-mile Massena rail line between Valleyfield, Quebec, and Woodard, New York.

The line serves many cities in the province of Quebec, including Beauharnois and Huntingdon, and in the state of New York, including Massena, Norwood, Potsdam and Gouverneur.

"With this acquisition from CSX, we are opening up new opportunities for our existing customers and local businesses who will be able to access new markets through CN’s unique three coasts network,” said CN President and Chief Executive Officer JJ Ruest in a press release.

CSX's decision to sell the line is part of the railroad's "broader initiative to generate value from non-core assets," CSX officials said in a prepared statement.

"An estimated 60 employees will be impacted by the transaction, and we are working with them to provide support throughout the transition," they added. "We are confident in the ability of CN to provide safe and effective service for our valued customers on the Massena Line."

The deal's terms were not disclosed. The acquisition is subject to regulatory review.

The pending acquisition is the second agreement announced between the two Class Is in the past month. On Aug. 8, the railroads said they agreed to launch a new intermodal service between CN's greater Montreal and Southern Ontario network, and the CSX-served ports of Philadelphia, New York, New Jersey and the New York City area. That agreement, which will take effect Oct. 7, is aimed at moving freight from trucks to rail.

The new intermodal service will help reduce congestion in New York in a sustainable manner, CN officials said.

Contact Progressive Railroading editorial staff.

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