CN and Watco Reach Agreement on Sale of Rail Lines in Northern Ontario, Wisconsin, and Michigan
CN (TSX: CNR) (NYSE: CNI) has finalized an agreement with Watco for the sale of approximately 250 miles of non-core track in Ontario and 650 miles of branch lines in Wisconsin and Michigan. This follows a sale process initiated in July 2020. Watco will handle freight operations and the Agawa Canyon Train Tour, while CN maintains strategic connections to its tri-coastal network. The U.S. rail line acquisition is subject to regulatory approval. Terms of the deal remain undisclosed, with the focus on enhancing operational efficiency and market connectivity.
- Successful sale of approximately 250 miles of track in Ontario and 650 miles in Wisconsin and Michigan.
- Watco will enhance freight operations, including the Agawa Canyon Train Tour, indicating potential operational growth.
- None.
MONTREAL, March 30, 2021 (GLOBE NEWSWIRE) -- 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, Ontario to Oba, Ontario 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.
CN Forward-Looking Statements
Certain statements included in this news release constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and under Canadian securities laws. By their nature, forward-looking statements involve risks, uncertainties and assumptions. The Company cautions that its assumptions may not materialize and that current economic conditions render such assumptions, although reasonable at the time they were made, subject to greater uncertainty. Forward-looking statements may be identified by the use of terminology such as “believes,” “expects,” “anticipates,” “assumes,” “outlook,” “plans,” “targets,” or other similar words.
Forward-looking statements are not guarantees of future performance and involve risks, uncertainties and other factors which may cause the actual results or performance of the Company to be materially different from the outlook or any future results or performance implied by such statements. Reference should be made to Management’s Discussion and Analysis in CN’s annual and interim reports, Annual Information Form and Form 40-F, filed with Canadian and U.S. securities regulators and available on CN’s website, for a description of major risk factors.
About CN
CN is a world-class transportation leader and trade-enabler. Essential to the economy, to the customers, and to the communities it serves, CN safely transports more than 300 million tons of natural resources, manufactured products, and finished goods throughout North America every year. As the only railroad connecting Canada’s Eastern and Western coasts with the U.S. South through a 19,500-mile rail network, CN and its affiliates have been contributing to community prosperity and sustainable trade since 1919. CN is committed to programs supporting social responsibility and environmental stewardship.
About Watco
Watco is a leading service and logistics company providing transportation, mechanical repairs and maintenance, material handling and warehousing, and logistics solutions for customers throughout North America and Australia. Watco is one of the largest short line railroad holding companies in the U.S. with more than 5,000 miles of track. Through its 40-year history, Watco has grown to be a leader in the railroad industry through exceptional customer service, improved safety and a strong commitment to its’ public and private partners. Watco controlled railroads currently operate over 600 miles of track within the state of Wisconsin. For more information on Watco, visit watco.com.
Contacts:
| CN Media | CN Investment Community |
| Jonathan Abecassis | Paul Butcher |
| Senior Manager | Vice-President |
| Media Relations | Investor Relations |
| (514) 399-7956 media@cn.ca | (514) 399-0052 investor.relations@cn.ca |
Watco Media
Tracie VanBecelaere
Communications Director
Watco
(620) 704-1288
media@watco.com
FAQ
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