CN has reached an agreement to sell the Algoma Central Railway to transportation and supply chain services company Watco as part of a larger move by CN to sell off its non-core lines and assets on the Soo Subdivision.
The terms of the agreement have not been disclosed.
Watco will continue freight operations and the Agawa Canyon Tour Train, and has signed a memorandum of understanding with Missanabie Cree First Nation regarding partnership opportunities for the Algoma Central Railway.
The original news release follows:
CN (TSX: CNR) (NYSE: CNI) and Watco are pleased to announce that they have reached an agreement for the sale of non-core lines and assets on the Soo subdivision (approximately 250 miles of track) that runs from Sault Ste. Marie, Ont. to Oba, Ont. and approximately 650 miles of branch lines of Wisconsin Central Ltd. in Wisconsin and Michigan. This marks the successful conclusion of the sale process that CN announced and launched in July of 2020.
In Ontario, Watco will continue freight operations as well as the Agawa Canyon Train Tour. Watco has also signed a Memorandum of Understanding with the Missanabie Cree First Nation regarding partnership opportunities for the Algoma Central Railway (ACR).
In both the United States and Ontario, CN will continue to play a central role as the transferred segments will remain connected to CN’s tri-coastal network, safely and reliably linking businesses to markets around the world.
The terms of the agreement were not disclosed and the acquisition of the rail lines in the United States is subject to regulatory authorization by the Surface Transportation Board.