Calgary Alberta - Canadian Pacific Railway has reached an agreement to sell the southern portion of its unprofitable Delaware & Hudson Railway to rival Norfolk Southern Corporation.
 
CP said Monday that Norfolk Southern will acquire just over 450 kilometres of track between Sunbury, Pennsylvania, and Schenectady, New York, for US$217-million.
 
CP will retain the remaining D&H track, which runs between Rouses Point and Albany in upstate New York.
 
The deal is subject to approval by the U.S. Surface Transportation Board.
 
"As we have stated in recent months, we've been in the process of negotiating the final details for the potential sale of the southern portion of our D&H line," CP CEO Hunter Harrison said in a statement.
 
"We are pleased to find a prospective buyer in Norfolk Southern."
 
The acquisition will give Norfolk Southern single-line routes from Chicago and the southeastern U.S. to Albany.
 
"Acquiring this portion of the D&H provides for a more efficient rail transportation system by consolidating freight operations with a single carrier," Norfolk Southern CEO Wick Moorman said.

Kristine Owram.