CP says it sees no acquisition targets on horizon

CEO comments indicate railroad will not pursue Pan Am
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CALGARY, Alberta – Canadian Pacific is apparently not interested in acquiring New England regional Pan Am Railways, which has put itself up for sale.

On the railway’s quarterly earnings call on Wednesday morning, CP CEO Keith Creel was asked if he foresaw further merger activity beyond its acquisition of regional Central Maine & Quebec, which it began operating last month.

“Right now there’s nothing immediate but our eyes are always open and if it makes sense we’ll not hesitate to move,” Creel responded.

The CMQ is part of CP’s historic route linking Montreal with the Port of Saint John, New Brunswick. It connects with Pan Am in Maine, and CP also connects with Pan Am’s west end in New York state.

CP had been mentioned as a potential acquirer of Pan Am, the privately held railroad controlled by Timothy Mellon and some other investors including the railroad’s executive team.

“Right now we’re focused on optimizing the CMQ. That’s going to keep us busy for a little while. Certainly I don’t want to dilute our efforts there,” Creel says.

CP officials are bullish on the CMQ in general and service to Saint John in particular via a haulage agreement with a pair of Irving-owned short lines. 

CP expects to gain intermodal, automotive, propane, and forest products traffic service through Saint John, which is in the midst of a $200 million upgrade of its port facilities.

 

 

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