CN buys Ottawa rail line
By Ottawa Business Journal Staff
Mon, Nov 3, 2008 5:00 PM EST
Ottawa Business Journal
The Ottawa Central Railway is among four properties that Montreal-based railway giant CN is buying from the Quebec Railway Corp. (QRC) for $49.8 million.
CN said today it has acquired three principal railway subsidiaries of the QRC, along with a rail-freight ferry operation, giving CN back the 540 track miles of rail line it formerly owned in eastern Ontario, eastern Quebec and northern New Brunswick, as well as a ferry service on the St. Lawrence River in eastern Quebec.
CN had sold the rail lines to QRC in the lates 1990s and has held a minority equity interest in the ferry operation since its startup in 1975, the company said.
The OCR runs between Coteau, Que., where it interchanges with CN, and Pembroke Ont., as well as serving Hawkesbury. Between Coteau and Ottawa, the OCR operates over VIA Rail trackage.
The other properties CN is buying are the Chemin de fer de la Matapedia et du Golfe, which has 221 miles of track from Quebec to New Brunswick, the 196-mile-long New Brunswick East Coast Railway, and the Compagnie de gestion de Matane Inc., which provides shuttle boat-rail freight service on the St. Lawrence River between Matane and Baie-Comeau, Que.
CN said it will be investing in the properties over the next three years to upgrade their rail lines and replace their existing locomotive fleet with "more modern motive power."