CP sells major stake in Detroit River Tunnel

Canadian Pacific Railway will receive $C110 million (US$86.9 million), plus additional proceeds of $C22 million based on future freight volume, in a transaction that will see Borealis Infrastructure acquire a majority interest in the Detroit River Tunnel Partnership.

The deal, which is subject to regulatory approval, will reduce CP’s interest in the partnership from 50% to 16.5%.

CP will retain exclusive operating rights through the tunnel, which carries its rail line from Windsor, Ont., to Detroit.

Borealis Infrastructure is an investment arm of the OMERS pension fund.