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Publish Date : 04-Jan-2014

Canadian Pacific Railway Ltd. (CP) declared that it has inked an agreement for the sale of the western end of its Dakota, Minnesota & Eastern railway in the United States to Genesee & Wyoming Inc for around US$210 million.

The part of the DM&E railway being sold includes upto 1,062 kilometres, mostly in Minnesota and South Dakota, with connections into Wyoming and Nebraska.

Genesee & Wyoming Inc. (G&W) operates short-line and regional freight railways in the United States, Australia, Canada, the Netherlands and Belgium.

Following the acquisition, G&W will rename the line the Rapid City, Pierre & Eastern Railroad and will employ approximately 180 employees, most of whom will have already been working on the line. This will enable it to connect to the networks of CP and other major North American railways.

However, Canadian Pacific will keep on operating and own around 3,000 kilometres of former DM&E track to the east.

CEO Hunter Harrison said, "There is a strong long-term franchise here and we are pleased to have found a partner in Genesee & Wyoming, which will maintain a high standard of customer service. South Dakota remains an important economic driver in the Midwest and CP looks forward to working with G&W."

It is estimated that the deal will be concluded in mid-2014, after receiving approval from the U.S. Surface Transportation Board and meets other conditions.

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