CN sells two rail lines in Toronto for C$310.5 million

Tue Mar 27, 2012 3:19pm EDT
 
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(Reuters) - Canadian National Railways said it has sold two rail line segments in the greater Toronto region to Metrolinx, Ontario's regional transport agency, for C$310.5 million.

Metrolinx is buying a line that runs from Rosedale Valley road north through the Don Valley to CN's main east-west freight line near the Toronto-York region border. The line is a part of CN's Bala subdivision.

GO Transit, Metrolinx's inter-regional transit system in Ontario, links Toronto to the greater Toronto area, which covers the city as well as the adjoining municipalities of Durham, Halton, Peel and York. Its Richmond Hill line runs through a part of CN's Bala subdivision.

CN's is also selling a part of its Oakville subdivision, starting from a point in the Etobicoke area of Toronto and terminating in Oakville, Ontario.

Last year, Metrolinx bought a segment of CN's Kingston subdivision for C$299 million.

Shares in CN were trading flat at C$79.74 on Tuesday on the Toronto Stock Exchange.

(Reporting by Arnav Das Sharma in Bangalore; Editing by Viraj Nair)