CN announces plan to acquire New York-based Massena Rail Line from CSX

A deal was struck between Class I railroads yesterday, with Montreal-based CN announcing it inked a deal in which it will acquire the Massena rail line from Jacksonville-based CSX.

A purchase price was not disclosed, and CN officials said that the acquisition is subject to regulatory review.

CN said that the Massena rail line is comprised of more than 220 miles of track between Valleyfield (Quebec) and Woodard (New York), adding that the line serves other cities in Quebec, including Beauharnois and Huntingdon, in addition to New York-based Massena, Norwood, Potsdam, and Gouverneur.

“CN 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 who will be able to access new markets through CN’s unique three coasts network,” said JJ Ruest, president and chief executive officer at CN, in a statement. “By acquiring the Massena rail line, CN continues to expand our network and foster additional supply chain solutions. CN is pleased to welcome communities along the Massena rail line to its family and we look forward to meeting our new neighbors.”

A CSX official told LM in a prepared statement that the decision to sell the Massena Line to CSX is part of CSX’s broader initiative to generate value from non-core assets.

“An estimated 60 employees will be impacted by the transaction, and we are working with them to provide support throughout the transition,” CSX said. “We are confident in the ability of CN to provide safe and effective service for our valued customers on the Massena Line. The transaction is subject to regulatory approval.”

Earlier this month, CN and CSX announced a new intermodal service offering between CN’s greater Montreal & Southern Ontario network, and the CSX-served ports of Philadelphia, New York, New Jersey and the New York City metropolitan area. This agreement will come into effect on October 7, 2019, CN said, and will help move freight from trucks to rail, reducing congestion in New York in a sustainable manner.