RailNews

STB Approves CSX, CPKC Takeover of Alabama Short Line

By Justin Franz

The U.S. Surface Transportation Board approved a proposal by CSX Transportation and CPKC to acquire the Meridian & Bigbee Railroad from Genesee & Wyoming, creating a new direct interchange between the Class Is. The approval was made in two separate rulings on October 17 and will go into effect on November 16. 

CSX and CPKC first announced the plan to take control of Meridian & Bigbee in 2023. In exchange, G&W will get some CPKC lines in Alberta. 

CPKC will acquire and operate the railroad between Meridian and Myrtlewood, Ala. and CSX will operate lines currently leased by MNBR from it east of Myrtlewood. The MNBR operates on 168 miles of track in Alabama and Mississippi. However, MNBR will not cease to exist. In fact, the short line is receiving rights to continue to provide local service to existing customers on former MNBR-owned lines and connect with other railroads without interchange restrictions.

“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, a press release last year. “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.”

This article was posted on: October 21, 2024