New railroad interchange planned for Alabama

The interchange will create a new freight corridor connecting Mexico, Texas and the U.S. Southeast

Canadian Pacific Kansas City, CSX Corp. and Genesee & Wyoming Inc. have reached an agreement to create a new direct CPKC-CSX interchange in Alabama.

As part of the agreement, CPKC and CSX would each acquire or operate portions of Meridian & Bigbee Railroad LLC, a G&W-owned railway in Mississippi and Alabama, to establish a new freight corridor connecting Mexico, Texas and the U.S. Southeast.

“This strategic acquisition will bring more shipping options to intermodal, automotive and other customers by providing a new, efficient corridor connecting expanding markets in Mexico, Texas and the U.S. Southeast,” said Keith Creel, CPKC president and CEO.

The MNBR runs between Meridian, Mississippi, and Montgomery, Alabama.

“This new service is a demonstration of our commitment to creating product offerings for shippers that help them leverage the efficiency and sustainability advantages of rail to drive growth,” said Joe Hinrichs, president and CEO of CSX.

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Under the agreements, CPKC would acquire and operate the segment of the MNBR between Meridian, Mississippi, and Myrtlewood, Alabama, and CSX would operate the lines currently leased by MNBR east of Myrtlewood. As a result, CPKC and CSX would establish a direct CPKC-CSX interchange at or near Myrtlewood. In exchange, G&W would acquire certain Canadian properties owned by CPKC and other rights. MNBR would receive rights to continue to provide local service to existing customers on former MNBR-owned lines and connect with other railroads without interchange restrictions.

Terms of the transactions were not disclosed and will be addressed in definitive agreements that the parties have agreed to negotiate. Certain portions will also have to be approved by the U.S. Surface Transportation Board.

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