CMQ for sale?

Discussion of present-day CM&Q operations, as well as discussion of predecessors Montreal, Maine & Atlantic Railway (MMA) and Bangor & Aroostook Railroad (BAR).

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CMQ for sale?

Postby backroadrails » Sat Dec 01, 2018 9:30 am

For the past few days I have heard talk of CMQ going up for sale in Q1 if car counts don’t increase. It hasn’t been officially announced by Fortress so I am unsure if it is true or not, but I guess we will find out soon if it is true.
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Re: CMQ for sale?

Postby kilroy » Mon Dec 03, 2018 2:35 pm

Fortress Investments is a hedge fund and not a railroad holding company so the sale of the company is expected at some point.

They need/expect double digit returns so if CMQ is not generating those returns and it is not forecast to do so in the near future, then I would expect Fortress to dump them. It's the nature of the beast.
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Re: CMQ for sale?

Postby CPF363 » Mon Dec 03, 2018 7:15 pm

Who would be in line to buy the CM&Q should Fortress Investments decides to divest of it?
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Re: CMQ for sale?

Postby backroadrails » Tue Dec 04, 2018 6:08 pm

I didn't really hear if CMQ was in fact loosing money, but it could just be Fortress was looking for a quicker ROI on CMQ. It hasn't been necessarily confirmed but I did hear that G&W was interested.
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Re: CMQ for sale?

Postby MEC407 » Tue Dec 04, 2018 7:08 pm

G&W would make sense if for no other reason than because they're already such a huge presence in New England.
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Re: CMQ for sale?

Postby backroadrails » Thu Dec 06, 2018 8:30 pm

Although unconfirmed I think CP was looking into it as well.
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Re: CMQ for sale?

Postby NHV 669 » Fri Dec 07, 2018 9:09 am

Isn't most of CMQ's network of lines mileage that CP didn't want anymore, as of less than 30 years ago?
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Re: CMQ for sale?

Postby CN9634 » Fri Dec 07, 2018 8:52 pm

CMQ has been a profitable railroad the last 3 years with growth in revenue about 3-5% per year.
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Re: CMQ for sale?

Postby roberttosh » Fri Dec 07, 2018 10:13 pm

I’d be real surprised, more like shocked, if CP had any interest whatsoever in the CMQ. The only caveat being if the crude oil by rail business to Saint John takes off again.
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Re: CMQ for sale?

Postby Cowford » Mon Dec 10, 2018 2:02 pm

CMQ has been a profitable railroad the last 3 years with growth in revenue about 3-5% per year.


According to Fortress docs, revenue growth has actually been better than that (2018 is artificially high due to SLR reroute revenue). Mix (more chem and propane) is at least a partial explanation , as carloading growth has been pretty tepid. Net income varies (in the red 2015 and 2017, profitable 2016 and thus far in 2018 - again, the reroute revenue helped a lot).
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