The transaction encompasses CSX’s Montreal and St Lawrence subdivisions, which, in addition to through traffic between Montreal and Syracuse, serves the towns of Beauharnois and Huntingdon in Quebec and Massena, Norwood, Potsdam, and Gouverneur in New York.

The terms of the transaction have not been disclosed and the sale is subject to regulatory approval.

Confirmation of the acquisition comes just weeks after the two Class 1 railways announced plans for a new jointly-operated intermodal service linking CN’s Greater Montreal & Southern Ontario region with the CSX-served ports of Philadelphia, New York, New Jersey and the New York City metropolitan area.