Central Maine and Quebec Railway Scheme
The Central Maine and Quebec Railway (CMQ), with reporting mark CMQ, was a Class II freight railroad that operated in the U.S. states of Maine and Vermont, as well as the Canadian province of Quebec. The company had its headquarters in Bangor, Maine, and was owned by Railroad Acquisition Holdings, LLC, a subsidiary of Fortress Investment Group, LLC. Notably, CMQ became a subsidiary of the Canadian Pacific Railway (CP) in June 2020, marking a significant milestone in its history. CMQ's U.S. operations were conducted under the name Central Maine and Quebec Railway US Incorporated, with offices located in New York, NY. The company was registered with the Surface Transportation Board on February 14, 2014.
In Canada, CMQ's operations were under the banner of Central Maine and Quebec Railway Canada Incorporated, and its offices were situated in Sherbrooke, QC. It was registered with Revenue Québec on the same date.
The journey of CMQ can be traced back to the Montreal, Maine and Atlantic Railway (MMA), a railway that emerged as a result of the 2002 Iron Road Railways bankruptcy. However, MMA faced a critical turning point in its history following the tragic Lac-Mégantic rail disaster in August 2013. This catastrophic event, in which a runaway crude oil train caused extensive damage and resulted in significant loss of life, led MMA to file for bankruptcy in both the United States and Canada.
In the aftermath of MMA's bankruptcy, Fortress Investment Group, LLC, operating through its subsidiary Railroad Acquisition Holdings, LLC (RAH), made a stalking horse bid for the operating rail lines. This bid was accepted by the bankruptcy trustee in January 2014. RAH subsequently established CMQ as the operating entity for the rail lines and finalized the sale in March 2014. CMQ received its certificate of fitness from the Canadian Transportation Agency on June 24, 2014.
Recognizing the need for substantial improvements, John E. Giles of RAH conducted an inspection of the railway's condition, estimating that a $10–20 million investment over three years would be necessary to restore the rail line to a safe and operable state.
In the same year, CMQ acquired ten GMD SD40-2Fs from Canadian Pacific Railway (CP).
CMQ had plans to resume the transportation of crude oil by rail in January 2016, but these plans were altered due to conditions in the petroleum market.
In 2017, CMQ took over operations of the former NS Hannibal Subdivision in Ohio from Norfolk Southern. This line serviced several industries owned by Fortress at the former Long Ridge Energy Generation Facility in Clarington, Ohio. Crews from Maine operated trains on this line.
On November 20, 2019, it was announced that Canadian Pacific Railway would acquire CMQ. This acquisition provided CP with a coast-to-coast network across Canada and expanded its presence in New England. As a result, CP reacquired several rail lines in Maine and Quebec that had been previously sold to CMQ's predecessor railroads.
The acquisition by CP was officially completed on June 4, 2020.
The Central Maine and Quebec Railway (CMQ), with reporting mark CMQ, was a Class II freight railroad that operated in the U.S. states of Maine and Vermont, as well as the Canadian province of Quebec. The company had its headquarters in Bangor, Maine, and was owned by Railroad Acquisition Holdings, LLC, a subsidiary of Fortress Investment Group, LLC. Notably, CMQ became a subsidiary of the Canadian Pacific Railway (CP) in June 2020, marking a significant milestone in its history.
CMQ's U.S. operations were conducted under the name Central Maine and Quebec Railway US Incorporated, with offices located in New York, NY. The company was registered with the Surface Transportation Board on February 14, 2014.
In Canada, CMQ's operations were under the banner of Central Maine and Quebec Railway Canada Incorporated, and its offices were situated in Sherbrooke, QC. It was registered with Revenue Québec on the same date.
Historical Overview:[]
The journey of CMQ can be traced back to the Montreal, Maine and Atlantic Railway (MMA), a railway that emerged as a result of the 2002 Iron Road Railways bankruptcy. However, MMA faced a critical turning point in its history following the tragic Lac-Mégantic rail disaster in August 2013. This catastrophic event, in which a runaway crude oil train caused extensive damage and resulted in significant loss of life, led MMA to file for bankruptcy in both the United States and Canada.
In the aftermath of MMA's bankruptcy, Fortress Investment Group, LLC, operating through its subsidiary Railroad Acquisition Holdings, LLC (RAH), made a stalking horse bid for the operating rail lines. This bid was accepted by the bankruptcy trustee in January 2014. RAH subsequently established CMQ as the operating entity for the rail lines and finalized the sale in March 2014. CMQ received its certificate of fitness from the Canadian Transportation Agency on June 24, 2014.
Recognizing the need for substantial improvements, John E. Giles of RAH conducted an inspection of the railway's condition, estimating that a $10–20 million investment over three years would be necessary to restore the rail line to a safe and operable state.
In the same year, CMQ acquired ten GMD SD40-2Fs from Canadian Pacific Railway (CP).
CMQ had plans to resume the transportation of crude oil by rail in January 2016, but these plans were altered due to conditions in the petroleum market.
In 2017, CMQ took over operations of the former NS Hannibal Subdivision in Ohio from Norfolk Southern. This line serviced several industries owned by Fortress at the former Long Ridge Energy Generation Facility in Clarington, Ohio. Crews from Maine operated trains on this line.
On November 20, 2019, it was announced that Canadian Pacific Railway would acquire CMQ. This acquisition provided CP with a coast-to-coast network across Canada and expanded its presence in New England. As a result, CP reacquired several rail lines in Maine and Quebec that had been previously sold to CMQ's predecessor railroads.
The acquisition by CP was officially completed on June 4, 2020.
Rockland Branch Operation:[]
In September 2015, CMQ was chosen by the Maine Department of Transportation to operate the state-owned Rockland Branch rail line, running from Brunswick to Rockland. This transition from the previous operator, Maine Eastern Railroad, took place on January 1, 2016. However, CMQ's proposal did not include the operation of passenger excursions, marking the end of 11 years of passenger rail operations along the Maine coast.
By the end of August 2021, it was announced that Finger Lakes Railway would take over the operation of the Rockland Branch. Shortly after the Surface Transportation Board's approval of the transfer, Dragon Cement, a major shipper on the line, declared that it would cease shipping cement out of its Rockland facility by the year's end. This decision marked the end of the rail shuttle operation that had constituted a significant portion of revenue for the line.
The Central Maine and Quebec Railway's history is a tale of transformation, challenges, and adaptation, culminating in its acquisition by the Canadian Pacific Railway, a pivotal development that reshaped the railway's place in the North American transportation landscape.
In September 2015, CMQ was chosen by the Maine Department of Transportation to operate the state-owned Rockland Branch rail line, running from Brunswick to Rockland. This transition from the previous operator, Maine Eastern Railroad, took place on January 1, 2016. However, CMQ's proposal did not include the operation of passenger excursions, marking the end of 11 years of passenger rail operations along the Maine coast.
By the end of August 2021, it was announced that Finger Lakes Railway would take over the operation of the Rockland Branch. Shortly after the Surface Transportation Board's approval of the transfer, Dragon Cement, a major shipper on the line, declared that it would cease shipping cement out of its Rockland facility by the year's end. This decision marked the end of the rail shuttle operation that had constituted a significant portion of revenue for the line.
The Central Maine and Quebec Railway's history is a tale of transformation, challenges, and adaptation, culminating in its acquisition by the Canadian Pacific Railway, a pivotal development that reshaped the railway's place in the North American transportation landscape.