Canadian Pacific Railway Limited (CP - Free Report) plans to build a multi-commodity transload terminal near its Côte Saint-Luc yard in Montreal. The company collaborated with TYT Group, a freight transportation service provider in Quebec, to realize this project.
The new transload terminal will provide customers with multi-commodity transload services and logistics solutions in core urban centers along the east coast, thus extending Canadian Pacific’s foothold in markets without direct access to rail. Additionally, it will help the company expand its footprint in the Montreal area.
Canadian Pacific will develop the terminal in multiple phases. The first phase involves the construction of a 118,000 square foot rail-served facility designed to facilitate receiving, unloading, carrying and delivery of rail traffic. This phase is currently expected to be completed next June. The facility will be built in a way that would allow future expansions. Meanwhile, the terminal will be operated by TYT Group.
Apart from this expansion initiative, the company recently entered into a definitive agreement with Fortress Transportation and Infrastructure Investors LLC to acquire Central Maine & Quebec Railway (CMQ), a subsidiary of the latter. CMQ covers 481 miles (774 kilometers) of rail lines mainly in Quebec and Maine.
The buyout will not only strengthen the company’s presence in the eastern United States but will also enhance customer experience by providing a smooth, secure and efficient access to ports at Searsport, ME, as well as to Saint John, New Brunswick, via Eastern Maine Railway Company (EMRY) and New Brunswick Southern Railway (NBSR).
The transaction is expected to be completed by this year-end, subject to customary closing conditions.
Zacks Rank & Key Picks
Canadian Pacific carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Transportation sector are Kansas City Southern (KSU - Free Report) , Allegiant Travel Company (ALGT - Free Report) and Controladora Vuela Compania de Aviacion, S.A.B. de C.V. (VLRS - Free Report) . While Allegiant sports a Zacks Rank #1 (Strong Buy), Kansas City Southern and Controladora Vuela carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Kansas City Southern, Allegiant Travel and Controladora Vuela have soared more than 59%, 68% and 98%, respectively, so far this year.
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