Canadian National (NYSE: CNI) is planning to acquire the 220-mile Massena rail line from CSX (NYSE: CSX), both companies said on August 29.
The Massena line runs between Valleyfield in Quebec and Woodard in New York. Woodard is near Syracuse and Valleyfield is southwest of Montreal. The line also serves cities and towns such as Beauharmois and Huntingdon in the Quebec province and Massena, Norwood, Potsdam and Gouverneur in New York state.
Canadian National “is excited to be expanding its reach in New York. With this acquisition from CSX, we are opening up new opportunities for our existing customers and local businesses that will be able to access new markets through CN’s unique three coasts network,” said JJ Ruest, president and chief executive officer at CN.
CSX said the sale is related to its broader efforts “to generate value from non-core assets.” The sale is subject to regulatory approval.
The sale follows another recent announcement by both companies that they would be offering intermodal service starting on October 7 between the CSX-served ports of Philadelphia, New York and New Jersey and CN’s areas of greater Montreal and southern Ontario.