CP sells major stake in Detroit River Tunnel

[conrailmike]

From Railway Age...

Canadian Pacific Railway will receive $C110 million (US$86.9 million), plus additional proceeds of $C22 million based on future freight volume, in a transaction that will see Borealis Infrastructure acquire a majority interest in the Detroit River Tunnel Partnership.

The deal, which is subject to regulatory approval, will reduce CP's interest in the partnership from 50% to 16.5%.

CP will retain exclusive operating rights through the tunnel, which carries its rail line from Windsor, Ont., to Detroit.

Borealis Infrastructure is an investment arm of the OMERS pension fund

[trainjunkie47]

Now is this being done for reducing operating expenses, to raise capital, or both?

[OwlCaboose2853]

I am not clearing about CP sells! MCRR was started Detroit River tunnel then NYC, PC, Conrail but CP bought it. I don't remember about it. Does STB will approve them?
MCRR/NYC history and photos; http://images.search.yahoo.com/images/v ... =143ka2uli

[Bentrail]

Now they have money for buying the Grand Rapids sub.

[trainjunkie47]

Now they have money for buying the Grand Rapids sub.

Thats a good one. LOL

I think they would need a few more bucks than that.

[TrainWatcher]

No way.... this HAS to be a HOAX....

[conrailmike]

I doubt Railway Age would publish a hoax.

[AJR]

If I recall correctly, Conrail sold the tunnel to both CN/CP. Thats when one of the bores in the tunnel was in larged. I think that CN sold its interest in the tunnel, but with running rights through it and CP became the owner.

[AARR]

CP operates most of the trains. CN operates a pair and NS may still operate a pair too. I don't know if CSX does.

[Racer]

CP operates most of the trains. CN operates a pair and NS may still operate a pair too. I don't know if CSX does.

CSX still operates one train through the tunnel. The train is D718.

[RRTTF]

Now, I must wonder, how long it will be before one or both of the tunnel tubes are converted for TRUCK traffic instead of RAIL. That has been the push of the heretofore minority investor (now majority owner) for a number of years.

Sad to see the demise of the great Michigan Central. Were the line from Buffalo to Chicago still intact, it could provide some real competition to those routes operating on the south side of Lake Erie.

Ever notice that, usually, where there is true rail competition, the traffic thrives... but once there is rail monopoly, the traffic begins to die off? Is there a connection?

[AARR]

There's an article in Crain's Detroit Business that CP and another party still want to build another railroad tunnel in Detroit. The article claims Detroit is missing out on a lot of freight business because they don't have this tunnel.

A few questions:
1. Is the current Detroit tunnel a bottle neck?
2. What additional traffic would use a new tunnel that can't use the old tunnel or use the CN Port Huron tunnel then come south to Detroit?

IMO a 2nd tunnel in Detroit will be a huge waste of money so I'm thinking I'm not thinking this through and missing something.

[PlymouthStationGuy]

http://www.canada.com/windsorstar/story ... 088c97447f
Don...this might be part of the reason way CP want a new tunnel cause they do not want this to happen again.

[AARR]

http://www.canada.com/windsorstar/story ... 088c97447f
Don...this might be part of the reason way CP want a new tunnel cause they do not want this to happen again.

WTF - they just invested millions of $$$ to increase the clearance of the tunnel to handle double stacks

[CAT345C]

There's an article in Crain's Detroit Business that CP and another party still want to build another railroad tunnel in Detroit. The article claims Detroit is missing out on a lot of freight business because they don't have this tunnel.

A few questions:
1. Is the current Detroit tunnel a bottle neck?
2. What additional traffic would use a new tunnel that can't use the old tunnel or use the CN Port Huron tunnel then come south to Detroit?

IMO a 2nd tunnel in Detroit will be a huge waste of money so I'm thinking I'm not thinking this through and missing something.

Don your over seeing that a second tunnel would provide space for all the homeless people. Duh-Uh

[AARR]

Don your over seeing that a second tunnel would provide space for all the homeless people. Duh-Uh

Hobo's need a place to live too

[Bentrail]

CP ALSO JUST SIGNED A NEW CONTRACT WITH X500 (CP242) UNTIL 2025 WITH CSX.

[rob]

the tunnel can handle two 8'6" contaniers but not two 9'6" containiers or the 20'2" autoracks like the p.h. cn tunnel can. that is why they want a new one.


Rob

[CAT345C]

So that would explain the reason for the old 89 foot flat cars with containers on the cp trains.

[AARR]

the tunnel can handle two 8'6" contaniers but not two 9'6" containiers or the 20'2" autoracks like the p.h. cn tunnel can. that is why they want a new one.

Rob

So they invested millions of $$$ for a tunnel expansion that would be obsolete in less than 10 years? If they were going to expand the tunnel why not just go all the way so the biggest and best freight cars can go through?