Canadian Pacific era (1991–present) In 1991, the Canadian Pacific Railway (CPR) purchased the D&H for $25M to give the CPR's transcontinental system a connection between Montreal and the New York City metropolitan area. CPR assumed all operations of the D&H system and eventually phased out the use of the D&H name and logos on locomotives or rolling stock. Under CPR, the D&H trackage was upgraded and excess track was removed. Although successful for a short time, the D&H was soon in limbo again, and in 1996, CPR placed it and other money-losing trackage in the eastern U.S. and Canada into a separate operating company named St. Lawrence and Hudson Railway. In 2000, the St.L&H was merged back into CPR. The D&H has had trouble making money for some time. As described above, it was originally constructed as a coal-hauling route, and when that business declined, turning a profit proved difficult. The D&H operates in some of the most rural areas of New York, and very few industrial customers between Binghamton and Rouses Point remain. The railroad's current prognosis is arguably better than it has been in a long time. Along with the New York City connection, haulage agreements with other railroads are greatly increasing traffic. CPR has been steadily using their high-power alternating current traction locomotives on their road trains on the D&H line, instead of their aging SD40-2 models. This is an indication of the increasing importance of reliable service. Also, major signal and track projects are underway to modernize the former D&H lines. In 2010, Canadian Pacific still had three of the former D&H's (ex-Lehigh Valley) EMD GP38-2s, 7303, 7304, and 7312 in their famous Delaware & Hudson "Lightning Stripe" paint scheme and had designated the 7312, nicknamed the "B.C. O'Brien" after the longest-running engineer on the D&H, as its heritage locomotive. However, in July 2013, the 7312 was sent to National Railway Equipment in Silvis, Illinois, for a complete rebuild and repaint. When 7312 emerged from the paint booth, it had been painted into Canadian Pacific's candy apple red paint. 7303 and 7304 were scheduled for the same, however, in June 2022 7303 was scrapped. 7304 is in storage as of June 2022. As of 2012, various trackage and haulage rights have been assigned to Norfolk Southern Railway (NS) over the D&H between Sunbury and Mechanicville, New York, and a connection to Canadian National via Rouse Point,