CP to acquire Central Maine & Quebec Railway

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Ken V
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CP to acquire Central Maine & Quebec Railway

Post by Ken V » Wed Nov 20, 2019 11:29 pm

Canadian Pacific (TSX: CP) (NYSE: CP) and Fortress Transportation and Infrastructure Investors LLC (NYSE: FTAI) announced they have entered into a definitive agreement whereby CP will acquire the Central Maine & Quebec Railway ("CMQ").

CMQ owns 481 miles (774 kilometres) of rail lines primarily in Quebec and Maine. The end-to-end transaction will provide CP customers with seamless, safe and efficient access to ports at Searsport, Maine and to Saint John, New Brunswick, via Eastern Maine Railway Company (EMRY) and New Brunswick Southern Railway (NBSR), thereby preserving and enhancing competition.
CP press release
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Engineer Spike
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Re: CP to acquire Central Maine & Quebec Railway

Post by Engineer Spike » Wed Nov 20, 2019 11:49 pm

What potential traffic can this generate besides the obvious Irving traffic?

johnpbarlow
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Re: CP to acquire Central Maine & Quebec Railway

Post by johnpbarlow » Thu Nov 21, 2019 4:52 am

It's possible that some Maine/Maritimes to/from Albany/midwest US traffic could be diverted off a Pan Am routing - eg, I've seen Moose River lumber centerbeams loaded at CMQ at Jackman, ME on Pan AM POED running through Ayer. That traffic might be re-routed west on CP instead of going to Pan Am at Northern Maine Jct. Also, I'm guessing CP could route loaded LPG tank cars from the midwest to CMQ points in Maine or NBS interchange as a single line alternative to NS/CSX/Pan Am. Don't know how much if any paper mill business CMQ has acess to these days. Just speculating...

RGlueck
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Re: CP to acquire Central Maine & Quebec Railway

Post by RGlueck » Fri Nov 22, 2019 9:21 am

The Searsport, Maine, branch remains active and is in good condition. CPR may have the strength to generate more traffic delivered by ship to rail.
My question would be the fate of the old BAR F3A, stored indoors at Derby. She's operable with very little repair.

CVRA7
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Re: CP to acquire Central Maine & Quebec Railway

Post by CVRA7 » Fri Nov 22, 2019 10:30 am

Wonder who actually owns the F3 these days? I think the Derby shop operation will stay independent for the time being based on info I've seen published elsewhere.

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Rockingham Racer
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Re: CP to acquire Central Maine & Quebec Railway

Post by Rockingham Racer » Fri Nov 22, 2019 5:48 pm

Nobody seems able to come up with an answer about what will happen to the Rockland Branch.

johnpbarlow
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Re: CP to acquire Central Maine & Quebec Railway

Post by johnpbarlow » Sat Nov 23, 2019 10:01 am

Trains Magazine on-line reports on 11/22/19 that CP Chief Marketing Officer John Brooks told the RailTrends 2019 conference on Friday that
"Canadian Pacific will upgrade Central Maine & Quebec trackage so that the route linking Montreal and Atlantic ports can handle premium intermodal and automotive traffic [upgrading from CMQ's current MAS from 25mph]..."

and "...Rival Canadian National has a major presence in Atlantic Canada, including service to Saint John, as well as Halifax, Nova Scotia. Buying the CM&Q will enable CP to better compete, Brooks says..."

and specifically "...Acquiring the CM&Q also may permit CP to better compete for potash traffic that CN currently handles to the port of Saint John for export to Brazil..."

http://trn.trains.com/news/news-wire/20 ... um-traffic

trainsinmaine
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Re: CP to acquire Central Maine & Quebec Railway

Post by trainsinmaine » Sat Nov 23, 2019 1:22 pm

The CMQ's Rockland Branch is leased, not owned. Since the State of Maine owns it, I would assume the State will determine who will be the succeeding operator --- an intriguing question, given the negotiations with Amtrak about running summer service on the line.

RGlueck
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Re: CP to acquire Central Maine & Quebec Railway

Post by RGlueck » Mon Nov 25, 2019 9:00 am

When Rockland was being operated by the Maine and Eastern, much money was invested as M&E parent company (Morristown & Erie) was trying to engage passenger traffic as well as freight. The change-over to CM&Q was a political back-stab by Gov. Paul LePage. CM&Q has only been interested in moving cement from the Dragon Cement plant, which kind of narrows the scope of the line. It should be interesting to see how this develops, but I wouldn't expect to see much dramatic change, at least not immediately. An outfit with the vision of the Strasburg could do great things on the Rockland branch, given some support.

BTW, I know of at least one private line that has expressed interest in the F3A, assuming the current owners want to release it.

douellet
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Re: CP to acquire Central Maine & Quebec Railway

Post by douellet » Wed Nov 27, 2019 6:13 pm

I’m looking forward to seeing the CP return to Maine. Listening to PBS this morning I got the impression that the state was looking forward to increased use of the port facilities in Searsport.

As for the BAR F3 that Dick mentioned, I hope the interested party would be based in Maine. Rode an excursion train pulled by the F3 during the BAR’s centennial celebration back in 1991 I believe. Still have my punched ticket.

johnpbarlow
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Re: CP to acquire Central Maine & Quebec Railway

Post by johnpbarlow » Wed Dec 04, 2019 6:07 am

Looks like CMQ's US lines will officially be acquired by CP's Soo Line subsidiary per this request for Motion for Protective Order filed with the STB on 12/3/19:
https://dcms-external.s3.amazonaws.com/ ... /50036.pdf

Filing will be submitted to STB no later than 12/19/19.

Engineer Spike
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Re: CP to acquire Central Maine & Quebec Railway

Post by Engineer Spike » Wed Dec 04, 2019 10:21 pm

To me this transaction has many parts. First being Fortress putting the company up for sale. This is the third operator since CPR spun off the lines. My opinion is hat this line has more potential as part of a large system. than it does alone.

CP has some strategic gaps in its system. Albany and Montreal are the only east coast ports left. These are hampered by the long river voyages to reach them. This is not too beneficial, as the sizes of the ships is limited.

I think that Irving may have even asked CPR to put in a bid, with a guarantee of traffic. CPR also gets whatever else it can drum up. This should be considerably more than what CMQ, nor its predecessors were able to do. To me, it seems like they can market an efficient single linehaul which could be to any point in the coast-to-coast system. Irving was basically captive to CN. Fortress has been pretty proactive about upgrading plant from the shambles which MMA left, but it still isn't great. The other option is Guilford. You may say that it is Pan Am now, but the same goons are still pulling the strings. Now Guilford can be circumvented altogether. If the NJ Loop in Delson was fixed up, and the curvature eased, then it would be a straight shot to the D&H.

Guilford has done some improvements, but 25 mph is still slow. On the B&M end, NS has done lots of work to the track. In the time period when most of Guilford's traffic was headed via Worcester, lots of double track and sidings were abandoned. Now the traffic has increased, but not much of the extra track has been replaced. That makes it a bottleneck.

I wonder if the other shoe will eventually drop. What I'm getting at is if Irving will keep its parts of the former CP lines. Is it worth it for them to run a railroad, or give CPR the rest of the line back, and wash its hands of the railroad business.

fromway
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Re: CP to acquire Central Maine & Quebec Railway

Post by fromway » Fri Dec 06, 2019 9:08 pm

On another site there was a statement that CP was planning on having service from SJ to Montreal in 24 hours in the future. What kind of upgrades will have to be made to the CMQ to get to that point; Crew and Facilities wise? What part will Irving have to play in a 24 hr trip?

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