Monday, October 04, 2010

RailAmerica, CP reach pact on short line

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Jacksonville, Fla.-based RailAmerica Inc. said Monday its RaiLink Canada Ltd. subsidiary has entered into a long-term deal with Canadian Pacific to operate a portion of the Ottawa Valley Railway line.

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Rail America ended its lease with Canadian Pacific over the Ottawa Valley line in December 2009. As part of that termination deal, the company has continued to operate 157 miles of the line between Sudbury and Mattawa, Ontario, and between Mattawa and Temiscaming, Quebec.

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RailAmerica now has agreed to continue to operate that stretch for five years, with the option for a further extension. Terms were not disclosed.

The Ottawa Valley Railway line primarily transports pulp and paper products.