MONTREAL — The Canadian Press reports that Canadian Pacific Railway announced today it has sold a railway feeder line in northern New Brunswick to Canadian National Railway Co.
The 12.6-kilometre line, known as the Edmundston Spur, runs between Grand Falls and Cyr Junction, near St. Leonard, NB. The line transports resources, food products and other goods.
Financial details of the sale were not released.
“CN is pleased that this agreement will enable CN to maintain rail service to an important customer, McCain Foods Ltd,” Canadian National senior vice-president Keith Heller said in a release.
Calgary-based CP Rail (TSX: CP) has a 22,500-kilometre network and operates from Montreal to Vancouver, as well as in the northeast and midwest United States.
Canadian National (TSX: CNR) is Canada’s biggest railway, with operations spanning Canada and the U.S., serving key ports on the Pacific, Atlantic and the Gulf of Mexico.
In trading on the Toronto stock market today, CN shares rose 28 cents to $64.05, while CP Rail rose 32 cents to $31.68.