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CN (TSX:CNR) sets new record to start 2021
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  • CN (CNR) has reached an agreement with Watco for the sale of rail lines in Northern Ontario, Wisconsin, and Michigan
  • The deal marks the conclusion of the sale process that CN announced and launched in July of 2020
  • The deal includes approximately 250 miles of track on non-core lines of the Soo subdivision, running from Sault Ste. Marie, Ontario to Oba, Ontario
  • It also covers approximately 650 miles of branch lines of Wisconsin Central Ltd. in Wisconsin and Michigan
  • CN Rail is down 0.58 per cent on the day, with shares of the company trading at C$ 146.23 at 11:09 am ET

CN (CNR) has reached an agreement with Watco for the sale of rail lines in Northern Ontario, Wisconsin, and Michigan.

The deal marks the conclusion of the sale process that CN announced and launched in July of 2020.

The agreement includes non-core lines and assets on the Soo subdivision, covering approximately 250 miles of track running from Sault Ste. Marie, Ontario to Oba, Ontario. It also covers approximately 650 miles of branch lines of Wisconsin Central Ltd. in Wisconsin and Michigan. 

In Ontario, Watco will continue freight operations as well as the Agawa Canyon Train Tour. In both the United States and Ontario, CN will continue to play a central role as the transferred segments will remain connected to CN’s tri-coastal network, linking businesses to markets around the world.

The acquisition of the rail lines in the United States is subject to regulatory authorization by the Surface Transportation Board.

Terms of the agreement have not been disclosed.

Watco is a leading service and logistics company providing transportation, mechanical repairs and maintenance, material handling and warehousing, and logistics solutions for customers throughout North America and Australia.

CN safely transports more than 300 million tons of natural resources, manufactured products, and finished goods throughout North America every year.

CN Rail is down 0.58 per cent on the day, with shares of the company trading at C$ 146.23 at 11:09 am ET.

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