1 April 2009
Canadian Pacific and Borealis Infrastructure Announce Changes to Their Detroit River Tunnel Partnership Agreement
Canadian Pacific Railway Limited and Borealis
Infrastructure Management Inc. announced that they have entered into a transaction that, subject to regulatory approval, will change
their joint ownership of the Detroit River Tunnel Partnership (DRTP) to a majority position for Borealis. CP retains its exclusive
right to operate and maintain the Detroit River tunnel; however, CP's interest will decrease to 16.5 percent from 50 percent with the
completion of this transaction. CP's proceeds from the transaction will be $110 million plus additional proceeds of $22 million based
on future freight volume through the tunnel.
The DRTP owns the Detroit River Rail Tunnel which carries CP's rail line from Windsor to Detroit. The tunnel, which transports rail
traffic across the Canada-US border, is a vital link in the North American transportation infrastructure
"I am pleased with the latest development in our long-standing partnership with Borealis and its parent, the OMERS
pension fund," said Kathryn McQuade, Canadian Pacific's Chief Financial Officer. "This transaction allows us to realize
value for our asset and strengthen our balance sheet while preserving our right to operate the tunnel."
"The Detroit River Tunnel is an investment that fits into our long-term strategy of securing infrastructure assets
that can generate stable and sustainable returns for OMERS plan members," commented OMERS President and CEO Michael
Nobrega.
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