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.
Quite a project. Makes the M&B acquisition small potatoes. That is quite a crooked route especially Turo – Port Hastings. What are its speeds? Is the 145 miles all way from Turo to Sydney? When was last time of passenger service to Sydney. Can almost hear Sydney pols calling for Halifax service go to Sydney.
Was any of this route once narrow gauge?
Reading this CBNS article about Nova Scotia and Sidney reminds me of the past Sidney & Louisbourg RR coal hauler short line that I once read about, where that common carrier ran steam locomotives up until about 1966. I recall one opinion where someone stated the only reason the S&LRR went bankrupt was because of investing in diesel replacements, while ignoring their local natural resource of cheap coal for their steam engine operations. https://www.trains.com/ctr/photos-videos/photos/photo-galleries/sydney-and-louisburg-photos-from-jim-shaughnessy/
Copy and paste from Novaporte web site:
Reconnecting Cape Breton and Newfoundland to North America by rail.
Novaporte’s infrastructure development project includes upgrading the entire CBNS short line railway to allow for double-stack containers to travel at a speed of 40 miles per hour. The CBNS short line runs between Sydney and Truro, Nova Scotia and is owned and maintained by Genesee and Wyoming.
Currently non-operational between Sydney and Port Hawkesbury, the CBNS railway rehabilitation and upgrade will be completed with a $103 million dollar investment, and within two years of commencing work.
Wise move with Novaporte development underway by the Port of Sydney.
Is anything actually happening with Novaporte?
What is there on this line that CN finds so interesting.
Potential future deep-water container ports in Middle Medford or Sydney. Both are long shots, existing facilities in Halifax have residual capacity.
A cut-and-paste: “The trackage between Port Tupper and Sydney has been out of service since 2016.” See the map: It’s POINT Tupper.