RailNews

Sale of CSX Massena Line to CN Drags On

By Railfan & Railroad Staff

WASHINGTON — CSX Transportation and Canadian National have again extended a self-imposed deadline to complete the sale of nearly 280 miles of track in New York and Quebec known as the Massena Line.

Negotiations have been dragging on for months after the U.S. Surface Transportation Board told the two carriers that it could not put in a prevision preventing CN from interchanging with Finger Lakes Railway and New York, Susquehanna & Western near Syracuse, N.Y. That single request has derailed negotiations since May. 

In August 2019, CSX entered into an agreement to sell the Massena Line (the former Conrail Montreal Secondary) and a number of branch lines to CN’s U.S. subsidiary Bessemer & Lake Erie. In April, the STB approved the deal minus the interchange prevision. The railroads began to negotiate again and the board gave them two different deadlines, May 18 and May 26, to sort out the differences. The two railroads were unable to come to an agreement and on May 26 asked the STB to reconsider the provision preventing CN from connecting with the Susquehanna and Finger Lakes. This week, the railroads asked the STB to reconsider the prevision “as soon as possible.” 

The two railroads have said they are extending the “drop dead date” to end negotiations to February 28, 2021. 

This article was posted on: December 3, 2020