By Railfan & Railroad Staff

Canadian Pacific Kansas City and CSX Transportation announced last week that they were taking over a Genesee & Wyoming short line in the Southeast to create a new direct interchange in Alabama. 

If approved by the U.S. Surface Transportation Board, CPKC would acquire and operate the segment of the Meridian & Bigbee Railroad between Meridian and Myrtlewood, Ala. and CSX would operate the lines currently leased by MNBR from it east of Myrtlewood. The Meridian & Bigbee operates on 168 miles of track in Alabama and Mississippi. The acquisition would establish a new freight corridor for shippers that connects Mexico, Texas and the Southeast. 

In return for the MNBR, G&W is expected to get some CPKC lines in Alberta, although the railroad did not specify which ones. 

“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 Chief Executive Officer. “With this new east-west connection taking advantage of each railway’s routes and service, we can extend our reach converting more freight traffic to rail and off our highways.”

MNBR will not cease to exist, however. In fact, the short line 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.

“We are pleased to have entered into agreements with CSX and CPKC that will enable MNBR to continue providing customers with outstanding short line service from Linden, Alabama, to Meridian, Mississippi, while enabling our Class I partners to create a new connection into the Southeast U.S.,” said G&W CEO Jack Hellmann. “At the same time, we have enhanced several agreements related to other G&W short line railroads and are collaborating on the expansion of our service to Alberta and the Alberta Industrial Heartland in conjunction with CPKC.”