CN buys CSX Line to New York

[David Lang]

Hello All.

GTW6401 has posted a link below on the National / Other States Talk Discussion regarding CN purchase of a CSX line from Valleyfield, Quebec, to New York City.

The President of CN in the article states..."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. “By acquiring the Massena rail line, CN continues to expand our network and foster additional supply chain solutions,"

I started this thread here to discuss how this acquisition might impact rail traffic through Michigan. While CSX and NS have more direct routes to Chicago, CN will now have their own line between New York and Chicago. I am curious your thoughts regarding this development in terms of potential new traffic between Chicago and New York using CN's main line across Michigan...or maybe this is more for traffic flows between Montreal and New York and the main line across Michigan will not be impacted at all?

Thanks GTW6401 for posting this.

David Lang

https://www.cn.ca/en/news/2019/08/cn-an ... te-of-new/

[DaveO]

"While CSX and NS have more direct routes to Chicago, CN will now have their own line between New York and Chicago."

Unless I'm missing something, no they won't. The CSX line they are acquiring runs from near Montreal to near Syracuse.

[David Lang]

Well, this is embarrassing. Woodard New York is nowhere close to New York City - thought the article was stating New York City, which did not make sense to me why CSX would sell to CN.

Any way this thread can be deleted?

David Lang

[Mike H]

I think your thread is still relevant Dave. This acquisition definitely could have an impact on traffic through Michigan, but I doubt that anyone trackside would notice a difference. Any traffic originating or terminating on this line that moves to the Gulf or to one of the Western roads will move through Michigan. There is traffic in the past that has moved between our region & the new line, it's hard to say if CN's rates would be better than CSX's rates or the truck rate. It will be fun to see what new opportunities could come of this.

Mike H

[justalurker66]

The correct link for the press release is below ...

CN Announces Strategic Acquisition from CSX in the State of New York.

https://www.cn.ca/en/news/2019/08/cn-an ... te-of-new/

MONTREAL, Aug. 29, 2019 (GLOBE NEWSWIRE) -- CN (TSX: CNR) (NYSE: CNI) is pleased to announce the signing of an agreement that will see CN acquire the Massena rail line from CSX, which represents more than 220 miles of track between Valleyfield (Quebec), in Canada, and Woodard (New York), in the U.S. The Massena rail line also serves many cities in the province of Quebec, including Beauharnois and Huntingdon, and in the state of New York, including Massena, Norwood, Potsdam, and Gouverneur.

[trainjunkie47]

Woodard, New York, and the end of the new CN track to be precise, is just off of Interstate-81, in a prime location for an intermodal terminal that can easily serve Albany, Binghamton, Rochester, and even points around New York City. The haul length is likely adequate to bring in containers from Halifax, from Chicago and points south on the IC, and from the west across the transcon.

They wouldn't have bought it if they didn't see container potential. However, I wouldn't be surprised if they see auto transload potential from that area as well?

[justalurker66]

The rest of the story ...
https://www.cn.ca/en/news/2019/08/cn-an ... -offering/
MONTREAL, Aug. 08, 2019 (GLOBE NEWSWIRE) -- CN (TSX: CNR) (NYSE: CNI) and CSX (NASDAQ: CSX) are pleased to announce a new intermodal service offering between CN’s greater Montreal & Southern Ontario areas, and the CSX-served ports of Philadelphia, New York, New Jersey and the New York City metropolitan area.


I'm not sure we will see Chicago - Montreal - New York links. CSX would want to keep that traffic on shorter connections.