CMQ Operations

Hello All,

I've started a seperate thread for the CMQR operations, as it seems the motive power thread may be mixing in with this question.

CMQR will begin operations in the US on Tuesday May 13th.
The Operations in Canada will continue to operate as the MMA(C) until the CTA approves the CMQR's certificate of fitness. This is expected to be no later than June 1st.

CMQR will not own Derby Shops, but will lease the shop services from the MMA for at least 5 years.

CMQR is set to sign an agreement Monday with Lac Megantic officials to resume traffic across the border. Also, they will outline a plan to rehab tracks and acquire new locomotives. Have a look but in warning, the article is in French.

http://m.radio-canada.ca/nouvelles/soci ... trie.shtml" onclick="window.open(this.href);return false;

So CMQR did not purchase the Derby facility?? I thought that through the bankruptcy , MMA was to be sold as one complete system?? not busted up and sold piece by piece to the highest bidder. I thought that MMA had to sell everything when they went into bankruptcy?? Something smells funny here.What does MMA want with just the buildings in Derby for??

CN9634 wrote:Hello All,

I've started a seperate thread for the CMQR operations, as it seems the motive power thread may be mixing in with this question.

CMQR will begin operations in the US on Tuesday May 13th.
The Operations in Canada will continue to operate as the MMA(C) until the CTA approves the CMQR's certificate of fitness. This is expected to be no later than June 1st.

CMQR will not own Derby Shops, but will lease the shop services from the MMA for at least 5 years.

So how will all of this work, will CMQR set up an interchange point at the border between Jackman and Lac Mégantic and at Richford, Vermont for cross-border traffic? Will entire trains be interchanged between MMA Canada and CMQR at designated locations? Is there any chance that there could be additional delay of the sale of Canadian portion of the system beyond June 1st?

rootsblown wrote:So CMQR did not purchase the Derby facility?? I thought that through the bankruptcy , MMA was to be sold as one complete system?? not busted up and sold piece by piece to the highest bidder. I thought that MMA had to sell everything when they went into bankruptcy?? Something smells funny here.What does MMA want with just the buildings in Derby for??

The auction for the purchase of the system must have only included the railroad itself and not the Derby shops property. Will the CMQ lease the shops from the trustee?

Perhaps the derby shops were owned by a seperate subsidiary and were never part of the bankruptcy? They have done work in the past for other of their entities...

What happens after 5 years? CMQ sells out before then or has to build their own facility or buy out derby?

BandA wrote:Perhaps the derby shops were owned by a seperate subsidiary and were never part of the bankruptcy

My bet was it was transferred to Rail World Locomotive Leasing LLC just after the Lac Megantic disaster…..

It is possible that there are environmental issues at Derby and the new owner did not wish to take responsibility for them.

Did the CMQR begin operations today on the American portion of the MM&A?

Not sure, will check tomorrow or this weekend. For now see this:
http://bangordailynews.com/2014/05/15/b ... n-the-way/" onclick="window.open(this.href);return false;

From the daily Business Buzz:

"The rail line between Saint John and Moncton, New Brunswick is undergoing extensive maintenance... according to the Kings County Record, Canadian National Railway has begun to replace 46,000 ties and weld 30 miles of track on the line...."

http://www.dailybusinessbuzz.ca/Constru ... ntenance/1" onclick="window.open(this.href);return false;

Sounds like CN is not quite ready to cede all that Saint John business to the CMQR.

The oil may return...

http://www.cbc.ca/news/business/lac-m%C ... -1.2645252" onclick="window.open(this.href);return false;

Cowford wrote:Sounds like CN is not quite ready to cede all that Saint John business to the CMQR.

Given the fact that CN is still are under contract for 8 years to be the primary hauler of westward Irving goods I'd say this is a smart investment. CMQ would not be fighting CN per se, but PAR/CSX for eastern seaboard traffic only.

If Irving either bought out PAR's Maine operations or came to some
sort of joint ownership with PAR for the Northern Maine PAR routes,
similar to the PAS arrangement, would Irving be able to get out of
that agreement with CN?

Same question, should Irving end up with the CMQR some years down
the road? Thanks.

In case anyone is interested, CMQ has been registered in the official AAR reporting mark database as the reporting mark for Central Maine & Quebec Railway. It is the only reporting mark registered for the company at this time.

Surprised that there is no website; That is part of any marketing effort