SUDBURY -- CN and U.S.-based transportation company Watco have reached an agreement for the sale of about 250 miles of non-core lines and assets on the Soo subdivision that runs from Sault Ste. Marie to Oba, Ont.
As part of negotiations that began in July 2020, Watco is also acquiring about 650 miles of branch lines of Wisconsin Central Ltd. in Wisconsin and Michigan.
"In Ontario, Watco will continue freight operations as well as the Agawa Canyon Train Tour," said a news release Tuesday announcing the sale. "Watco has also signed a Memorandum of Understanding with the Missanabie Cree First Nation regarding partnership opportunities for the Algoma Central Railway."
Will still be connected to CN network
The rail lines being sold will remain connected to CN’s tri-coastal network, "safely and reliably linking businesses to markets around the world," the release said.
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 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 southern U.S. through a 19,500-mile rail network, CN and its affiliates have been operating since 1919.
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. For more information on Watco, click here.
