CN purchase of CSX Massena Line

It has been announced that with the CSX downsizing that the line from Syracuse into Quebec will be sold to CN.I wanted to hear what ou guys think the strategic importance of this line will be for CN. Obviously the line will connect to CSX in Syracuse. Has there been any word as to CN gaining a share.in the operation of DeWitt Yard/ Will interchange be permitted with the Susquehanna?

The sale of the Massena Line to Canadian National is clearly connected to the joint CSX-CN intermodal services that were announced a few weeks ago. CN buying the line means that they are going to get a greater share of the line haul for this traffic then they otherwise would have gotten. CN also wants to grow their traffic, especially in Eastern Canada, where their mainline is underused. By acquiring the Massena Line, it gives CN more control over what traffic from the Eastern US is put on it's rails in Eastern Canada.

The sale only goes as far south as Woodard, New York so that CSX can still access their Oswego Line without the use of trackage rights, and to retain the industry directly north of Syracuse. The deal is almost certin to include trackge rights to the CSX yard in East Syracuse, but doesn't include any way to directly interchange with the NYS&W. This is done so that CSX can solely decide what is put on and off CN at Syracuse.

It is possible that in the upcoming STB review, that the Susie-Q can force in a provision that allows it to interchange with CN, but I don't see that as likely, considering that CSX owns 40% of the stock in the NYS&W.

https://www.stb.gov/Filings/all.nsf/WEB ... enDocument

The STB docket for CN to acquire the Massena Line has been filed. Interestingly enough, the CN subsidiary that will "officially" take over the lines is the Bessemer & Lake Erie.

After reading through the document, the sale is much larger than orginally thought. Many were saying that CSX would sell their line north of the Buckley Road overpass, so that they would still have access to the line to Oswego. However, the line to Oswego is included in the sale. CSX is selling everything north of the wye in downtown Syracuse. CN will have trackage rights to both CSX yards in Syracuse. Belle Isle and DeWitt, but won't be allowed to interchange with the NYS&W or the Finger Lakes railway.

CN/B&LE ownership is to begin at CSX QM 3.0, which is one mile north of QC 291, along Onondaga Lake south of the Onondaga Lake Parkway bridge. Milepost numbering on this line reflects the original RW&O markers which began in downtown Syracuse.

This effectively gives CN access to all customers and local work on the line.

APPROVED: ProgressiveRailroading

STB approves CN acquisition of CSX rail line

The U.S. Surface Transportation Board (STB) yesterday authorized CN subsidiary Bessemer and Lake Erie Railroad Co.'s (B&LE) acquisition and operation of the Massena rail lines from CSX.

CN announced in August 2019 it signed an agreement to acquire the 236-mile Massena lines, which operate between Valleyfield, Quebec, and Woodard, New York. The B&LE will operate the line.

More than 45 percent of current carload traffic on the lines is overhead traffic exchanged between CN and CSX. The acquisition preserves the CN system's direct connection with CSX for overhead traffic that currently moves over the Massena lines and ensures that traffic using the lines continue to move directly between the two systems, rather than through an additional, unaffiliated railroad, according to the STB filing.
...

https://www.progressiverailroading.com/ ... assena.pdf

...
B&LE seeks the Board’s prior review and authorization pursuant to 49 U.S.C. §§ 11323-
25 to acquire and operate certain CSXT lines, collectively known as the Massena Lines, from
Woodard, N.Y., to the U.S.-Canadian border near Fort Covington, N.Y. (Appl. at 1-2.) More
specifically, these lines consist of CSXT’s St. Lawrence Subdivision between CSXT milepost
QM 3.0 at or near Woodard and CSXT milepost QM 183.1 at or near Fort Covington, on the
U.S.-Canadian border, a distance of approximately 179.2 miles; CSXT’s Fulton Subdivision
between CSXT milepost QMF 7.2 at or near a connection to CSXT’s St. Lawrence Subdivision
near Woodard and CSXT milepost QMF 37.95 at or near Fort Ontario, N.Y., a distance of
approximately 31 miles; CSXT’s Balmat Industrial Track between CSXT milepost QMB 0 at or
near a connection with CSXT’s St. Lawrence Subdivision near CSXT milepost QM 107 and
CSXT milepost QMB 9, a distance of approximately 9 miles; CSXT’s Rooseveltown Industrial
Track between CSXT milepost QMR 63 at or near a connection with the St. Lawrence
Subdivision at Helena, N.Y., and CSXT milepost QMR 68 at or near Rooseveltown, N.Y., a
distance of approximately 5 miles; and CSXT’s Carthage Branch between CSXT milepost
QMC 86.8 at or near a connection with CSXT’s St. Lawrence Subdivision near Philadelphia,
N.Y., and CSXT milepost QMC 74.7 at or near Regis, N.Y., a distance of approximately
12 miles and CSXT’s connection with Mohawk, Adirondack, and Northern Railroad
Corporation. (Id. at 21-22.) The Transaction is part of a larger purchase agreement, under which
CNR and B&LE have agreed to acquire from CSXT approximately 278.1 miles of rail line
(including the 236.3 miles that comprise the Massena Lines) between Beauharnois, Que., and
Woodard, pursuant to a Purchase and Sale Agreement (PSA)2
that was executed on August 29,
2019.3
(Id. at 1-2, 7 & Ex. 2, PSA.)4
The Transaction would move the current interchange between the CN System5
and CSXT
from Huntingdon, Que., to Woodard, where the ends of each railroad would meet. (Id., Ex. 15
at 5.)6
However, B&LE states that there are not adequate facilities at Woodard for physically
interchanging traffic, nor could such facilities easily be added. (Id. at 22.) B&LE would
therefore physically interchange traffic with CSXT at CSXT’s Belle Isle Yard (near Solvay,
N.Y.) or CSXT’s Dewitt Yard (near Syracuse, N.Y.), depending on the type and direction of
traffic. (Id. at 22, 25, Ex. 15 at 5.) According to Applicant, CSXT would grant operating rights
that would allow B&LE to operate over CSXT’s tracks between the Massena Lines and the two
CSXT yards solely for the purpose of effectuating interchange with CSXT. (Id. at 25 n.25,
Ex. 15 at 5-6.) Indeed, the PSA governing the Transaction discusses B&LE’s limited operating
rights over CSXT’s trackage near Syracuse and expressly prohibits B&LE from seeking access
...

The Parties agree that [CSXT] will not grant to Buyer, and Buyer will not seek,
directly or indirectly, before or after Closing, through the transactions contemplated
by this Agreement or other means, access to the New York, Susquehanna and
Western Railway (“NYSW”) or the Finger Lakes Railway Corporation (“FGLK”)
or any successor or assign of NYSW or FGLK. In the event such access is acquired
or required to be afforded prior to, or as a condition of Closing, either Party shall
have the right to terminate the Transaction pursuant to Section 11.02 hereof. Buyer
shall be entitled to the limited use of certain trackage as described in the Operative
Documents for the purpose of effectuating interchange, with [CSXT] only, at each
of Belle Isle and in Dewitt Yard provided that such interchange shall not be used
for the purpose of achieving access to NYSW or FGLK. This Section 5.14(b) shall
survive Closing.