OMAHA, Neb. - CSX and CPKC railroads announced June 28 that allows them to utilize a little-used connection between the two networks in the Southeast to handle a significant amount of freight.
The deal involves a section of track linking the RRs currently used only for local traffic, which has a potential to turn it into a major pipeline for cargo.
CPKC CEO Keith Creel said the plan is to invest in upgrades to the rail line to handle more traffic and provide a shorter path between manufacturing plants in Mexico and the Southeast. This trains-crossing section of track is operated by a subsidiary of Genesee &Wyoming and runs only at 10-25 mph speeds.
The new connection will provide a new competitive option with the connection CPKC has with Norfolk Southern at Meridian, Miss.
CPKC will acquire about 50 miles of track between Meridian and Myrtlewood, Ala., if regulators approve. CSX will take over the line it leases to the Meridian & Bigbee Railroad that runs east to Montgomery, Ala.
Terms of the deal weren't disclosed but the railroads said Genesee & Wyoming will receive certain Canadian properties owned by CPKC as compensation.
The Meridian & Bigbee Railroad that had been operating in Alabama and Mississippi will be allowed to continue providing local service along the route. (The AP 06/28/23) Railroads CSX and CPKC will invest in connecting their networks to increase traffic in Southeast | Region | meridianstar.com
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