October 23rd, 2020

CP Rail to own 100% of Detroit River rail tunnel in deal with OMERS Infrastructure

By The Canadian Press on October 16, 2020.

Canadian Pacific Rail locomotives sit idle at the company's Port Coquitlam yard east of Vancouver, B.C., on May 23, 2012. Canadian Pacific will get full ownership of the cross-border Detroit River rail tunnel through a deal with OMERS Infrastructure. THE CANADIAN PRESS/Darryl Dyck

TORONTO – Canadian Pacific Railway Ltd. will acquire full ownership of a cross-border railway tunnel under the Detroit River through a US$312-million deal with OMERS Infrastructure.

CP Rail currently owns 16.5 per cent stake in the Detroit River Tunnel Partnership.

OMERS Infrastructure, an arm of the pension system for Ontario’s municipal employees, first invested in the partnership in 2001.

The Calgary-based railway has operated the tunnel throughout the OMERS ownership period. CP Rail says full ownership of the tunnel will reduce its operating costs.

The 2.6-kilometre tunnel links Windsor, Ont., and Detroit and is an important transportation route between Canada and the United States.

The deal is expected to close at the end of the year, subject to regulatory approvals and other conditions.

This report by The Canadian Press was first published Oct. 16, 2020

Companies in this story: (TSX:CP)

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