CSX, CN Call Off Sale of Canadian Route

The sale of a CSX line to Canada to Canadian National has been called off.

The line between Montreal and Syracuse, New York, was to have been merged into CN’s Bessemer & Lake subsidiary.

Although the sale received approval from the U.S. Surface Transportation Board in April 2020, regulators also imposed a number of conditions on the sale that the two Class 1 railroads were unwilling to accept or able to work around.

Chief among them was a requirement that a clause CSX had insisted upon in the sale agreement that CN would be unable to negotiate direct interchange agreements with the Finger Lakes Railway and the New York, Susquehanna & Western in the Syracuse region.

The STB twice extended the deadline for CSX and CN to reach a new sale agreement but they were unable to do so and asked the STB to reconsider their original deal.

Regulators refused and CN sued the STB in federal court in April 2021. With the sale now having been called off, CN has sought and received approval from the court to dismiss its lawsuit.

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