CN has reached a deal to sell the Algoma Central Railway to transportation and supply chain services company Watco as part of a larger CN initiative to sell its lines and non-core assets in the Soo subdivision.
Terms of the deal were not disclosed.
Watco will continue freight operations and the Agawa Canyon excursion train, and has signed a Memorandum of Understanding with the Missanabie Cree First Nation regarding partnership opportunities for the Algoma Central Railway.
The original press release follows:
CN (TSX: CNR) (NYSE: CNI) and Watco are pleased to announce that they have entered into an agreement for the sale of lines and non-core assets on the Soo subdivision (approximately 250 miles of track) which departs from Sault Ste. Marie, Ont. in Oba, Ont. and approximately 650 miles of branch lines from Wisconsin Central Ltd. in Wisconsin and Michigan. This marks the culmination of the sales process that CN announced and launched in July 2020.
In Ontario, Watco will continue freight operations as well as the Agawa Canyon train tour. Watco also signed a Memorandum of Understanding with the Missanabie Cree First Nation regarding partnership opportunities for the Algoma Central Railway (ACR).
In the United States and Ontario, CN will continue to play a central role as the transferred segments will remain connected to CN’s tricolor network, securely and reliably connecting businesses to markets around the world.
Terms of the deal were not disclosed and the acquisition of the rail lines in the United States is subject to regulatory approval by the Surface Transportation Board.