The Canadian Transportation Agency has issued a “certificate of fitness” to Central Maine & Québec Railway Canada Inc for railway operations in this country that result from the purchase of Montréal, Maine and Atlantic Railway Inc.
Montréal, Maine & Atlantic Railway was the company involved in the train derailment in Lac-Mégantic, Québec, in July 2013. The disaster was responsible for the deaths of 47 people.
The agency issued the certificate after determining that Central Maine & Québec Railway Canada has adequate third-party liability insurance coverage, including self-insurance, for operating a railway in Canada.
Driving the management of the new railroad business on both sides of the Canada-U.S. border is New York-based private equity firm Fortress Investment Group.
In January 2014, an affiliate of Fortress, Railroad Acquisition Holdings LLC, won the rights to the assets of Montreal, Maine & Atlantic Railway and its Canadian affiliate, Montreal, Maine & Atlantic Canada Co, in a bankruptcy-related auction. Media reports put the winning bid at US$15.85 million.
Photo courtesy of Shutterstock