Canadian National has acquired a stake in Genesee & Wyoming short line Cape Breton & Central Nova Scotia Railway, which operates the easternmost trackage in North America.
Under the deal announced on Wednesday, CN will manage interline shipments for customers on the 145-mile CBNS. G&W will continue to operate the railroad, which connects with CN at Truro, Nova Scotia. G&W previously managed interline shipments.
“We are proud to be partnering with Genesee & Wyoming to serve existing customers on this line,” Patrick Lortie, CN’s chief strategy officer, said in a statement. “This partnership will further reinforce CN’s presence in eastern Canada where we believe there will be a growing role to play in the competitiveness of North American trade. It will also enable our network to reach new opportunities in the longer-term, further advancing our strategic agenda of accelerating profitable, sustainable growth.”
“This partnership fully leverages the expertise of both a local, first- and last-mile railroad and a Class I railway that is part of the broader North American freight rail network,” Rick McLellan, president of G&W’s Canadian operations, said in a statement. “As G&W and CN work together to enhance service for rail-served industries in the Nova Scotia region, customers can continue to rely on the safe and efficient transportation service they have received for more than a decade.”
Terms of the transaction were not disclosed.
CN spun off the CBNS to shortline operator RailTex in 1993; that company was purchased by Rail America in 2000, and G&W acquired RailAmerica in 2012. The trackage between Port Tupper and Sydney has been out of service since 2016.
— Updated at 6:30 p.m. CDT to clarify chain of ownership following CN spinoff in 1993.
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