CN, CSX Still Unable to Finish Line Sale

The acquisition by Canadian National of a CSX secondary line between Syracuse, New York, and Montreal continues to lag.

The two railroads this week said they could not meet a Nov. 30 deadline to finish the deal and asked for a deadline extension to Feb. 28, 2021. Either party could back out of the deal before that date.

The line in question is known as the Massena Line and the STB had last April approved CN’s acquisition of it through its Bessemer & Lake Erie subsidiary.

However, a sticking point in completing the deal has been an STB directive that CSX and CN remove a sale provision that prohibits CN from ever negotiating direct interchange with the Finger Lakes Railway and the New York, Susquehanna & Western in the Syracuse area.

In their latest filing with the STB, CN and CSX said they remain unable to come to revised terms of the sale and have asked the Board to reconsider its directive.

The STB has twice extended the deadline for CN and CSX to submit a revised purchase and sale agreement.

In the filing this week the two railroads asked the STB to expedite its response to their request.

The sale involves  278.1 miles between Beauharnois, Quebec, and Woodard, New York,

including 41.8 miles of trackage in Quebec and branch lines and spurs on both sides of the border.

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