In November, CP said it would acquire the 401-mile Central Maine & Quebec, a deal that includes former CP trackage from Montreal to Maine and a link with Irving-owned short lines that reach the Port of Saint John, New Brunswick, via former CP trackage.
Now CEO Keith Creel has hinted that CP would be interested in purchasing its former route to Quebec City as well.
At an investor conference today, Creel was asked if CP would be interested in buying any Genesee & Wyoming short lines. There has been speculation that Brookfield Asset Management, which is acquiring G&W, would spin off some of the shortline holding company’s routes.
“We’ll take a look if Brookfield makes some available,” Creel responded. “There’s one up in Quebec that might make sense for us if it were the right price and the numbers were in the right place.”
Creel did not name the railroad in Quebec, but was likely referring to the 301-mile Quebec Gatineau Railway that G&W acquired from CP in 1997. It links Montreal and Quebec City with the Ottawa, Ontario, area.
A CP spokesman did not immediately return a Trains News Wire email seeking clarification.
The only other G&W property in Quebec is the Saint Lawrence & Atlantic, the former Grand Trunk route from the Montreal area to Portland, Maine. It connects with Canadian National outside of Montreal.
CP would only be interested in purchasing connecting short lines, Creel says.
Creel also said there are former CP routes in the U.S. that the railway may be interested in bringing back into the fold.
None of the potential short line acquisitions would equal the potential of the CM&Q deal, which gives the railroad access to deep water ports at Searsport, Maine, and better access to Saint John, Creel says.
The CM&Q deal is exciting because it will offer shippers a competitive option into Saint John for the first time in 25 years, Creel says.
Saint John is the busiest port in Eastern Canada, Creel notes, and CP’s route across Maine is significantly shorter than CN’s. CP will invest to bring the 25-mph CM&Q up to CP main line standards.
Creel spoke at the seventh annual Credit Suisse Industrials Conference.
As for the Ottawa Central, the line into Pembroke is removed, the line into L’Original was stated for abandonment this Fall, and the remaining operations in Ottawa will soon cease, if not already gone. The OCRR is dead as well.
Don’t fool yourself about all this “We’re beyond PSR” propaganda; in the West, traffic may be is growing, but in the East, CN is a good ol’ PSR railroad that is actively turning customers away and shrinking into oblivion. Maybe it’s no coincidence why CP wants to reclaim their Eastern Canada operations and all traffic they lost to CN.
They’re smelling blood.
Charlevoix used to run 30-50 cars trains out of Pointe au Pic (from the Donohue paper mill and a lumber transload). That traffic was lost to trucks and boats and new operator Charlevoix Rwy is no longer interested in providing freight service on the line. From a freight perspective, it is dead.
Charlevoix is not abandonned. Réseau Charlevoix operates a touristi train made of BR-628 self propelled 2 cars units from Montmorency fall (just next to Québec city) to La Malbaie on summer and some other moments on this highly scenic line along the St-Lawrence river.
Bertrand Dion
St-Irénée
Charlevoix (QC)
Old maxim–the more things change the more they stay the same!
Maybe they can move their headquarters back into Windsor Station too?
* … let’s hope CN stays away from SLR/SLQ.
All eastern shortlines bought back by CN are either abandonned (Ottawa Central, Charlevoix) or in terminal decline (NBEC/CFMG). Let’s hope
Ottawa Central and Charlevoix are abandoned?
Hope they relaunch the Atlantic Limited while they are at it.
7 years ago it would have been legitimate to speculate that G&W would acquire CP.
I do wonder if these moves would require CN to take back St. Lawrence & Atlantic.
In line with Keith’s comment they are interested in purchasing connecting short lines; I’ll note the CMQ line CP is acquiring connects with G&W’s St. Lawrence & Quebec / St. Lawrence & Atlantic at Sherbrooke, PQ.
There is always that line from Detroit thru Grand Rapids to Chicago that CSX is strangling. BUY IT and complete the Iron Lariate around the Great Lakes.
Maybe UP could sell them the SI while they’re at it.
US . . . Northern Plains? DMVW? Or does he just mean NBS and company?