CN, G&W Forge CBNS Partnership

Genesee & Wyoming Inc. on Nov. 1 entered into a partnership with CN involving G&W’s Cape Breton & Central Nova Scotia Railway (CBNS). CN will acquire a stake in CBNS and manage interline customer movements on 145 route-miles, while a G&W subsidiary will continue to operate the CBNS line from Truro to Point Tupper, Nova Scotia. CBNS interchanges with CN’s main line on the Class I’s Springhill Subdivision at Truro. Terms of the transaction were not disclosed.

“We are proud to be partnering with Genesee & Wyoming to serve existing customers on this line,” said Patrick Lortie, Senior Vice President and Chief Strategy Officer at CN. “this partnership will further reinforce CN’s presence in eastern Canada, where we believe there will be a growing role to play in the competitiveness of North American trade. It will also enable our network to reach new opportunities in the longer term, further advancing our strategic agenda of accelerating profitable, sustainable growth.”

“This partnership fully leverages the expertise of both a local, first- and last-mile railroad and a Class I railway that is part of the broader North American freight-rail network,” said Rick McLellan, President of G&W’s Canadian operations. “As G&W and CN work together to enhance service for rail-served industries in the Nova Scotia region, customers can continue to rely on the safe and efficient transportation service they have received for more than a decade.”

Northborne Partners served as financial advisor, while McInnes Cooper served as legal counsel to G&W.