The line, owned by the State of New York, opened in 1998 to allow the Canadian Pacific Railway's subsidiary Delaware and Hudson Railway to access New York City. The access was mandated by the Surface Transportation Board to give competition to CSX's post-Conrail breakup monopoly on New York City and encourage freight in the area to use rail. CP uses trackage rights over CSX and Metro-North from Schenectady south along the east side of the Hudson River to the connection, and runs to an interchange with the New York and Atlantic Railway at Fresh Pond Yard in Queens. From Fresh Pond the NY&A takes freight to the city-owned 65th Street Yard in Bay Ridge, Brooklyn. The first train to use it ran on March 7, 2000.
The line is also used by CSX.