CPR sells big stake in Detroit-Windsor tunnel
WINDSOR, Ont. — CP Rail says it’s selling a large chunk of its half of the Detroit River Tunnel to its co-owner, Borealis Infrastructure Management.
While CP retains the exclusive right to operate and maintain the Detroit River Tunnel, its share of the Detroit River Tunnel Partnership will decrease to 16.5 percent from 50 percent.
CP says its proceeds from the transaction will be $110 million plus an additional $22 million based on future freight volume through the tunnel.
The tunnel, which transports CP’s rail traffic across the Canada-US border from Windsor to Detroit is a vital link in the North American transportation infrastructure.
"This transaction allows us to realize value for our asset and strengthen our balance sheet while preserving our right to operate the tunnel," says Kathryn McQuade, CP’s Chief Financial Officer.
Have your say
This is a moderated forum. Comments will no longer be published unless they are accompanied by a first and last name and a verifiable email address. (Today's Trucking will not publish or share the email address.) Profane language and content deemed to be libelous, racist, or threatening in nature will not be published under any circumstances.