CPKC and CSX purchase rail belongings from Genesee & Wyoming

Canadian Pacific Kansas Metropolis (CPKC) and CSX Corp. have struck a deal to purchase further rail belongings, making a direct CPKC-CSX interchange connection in Alabama and establishing a hall linking Mexico, Texas, and the U.S. Southeast.

Making a unified community of worldwide rail traces spanning North America has been a core technique for Canadian Pacific ever since its $31 billion deal to accumulate Kansas Metropolis Southern was finalized in April. At the moment, the brand new firm stated its merger would create “the primary and solely single-line railway connecting Canada, the U.S. and Mexico.”

As a part of the most recent sequence of proposed transactions, CPKC and CSX would every purchase or function parts of Meridian & Bigbee Railroad LLC (MNBR), a Mississippi and Alabama regional railroad that’s owned by Genesee & Wyoming Inc. (G&W).

“This strategic acquisition will convey extra delivery choices to intermodal, automotive, and different clients by offering a brand new, environment friendly hall connecting increasing markets in Mexico, Texas and the U.S. Southeast,” Keith Creel, CPKC President and CEO, stated in a launch. “With this new east-west connection benefiting from every railway’s routes and repair, we will lengthen our attain changing extra freight site visitors to rail and off our highways.”

Phrases of the deal weren’t disclosed. However the companions stated that CPKC would purchase and function the phase of the MNBR between Meridian and Myrtlewood, Alabama, and CSX would function the traces presently leased by MNBR east of Myrtlewood. In consequence, CPKC and CSX would set up a direct CPKC-CSX interchange at or close to Myrtlewood, Alabama. In alternate, G&W would purchase sure Canadian properties owned by CPKC and different rights. MNBR would obtain rights to proceed to offer native service to present clients on former MNBR-owned traces and join with different railroads with out interchange restrictions.

“We’re happy to have entered into agreements with CSX and CPKC that can allow MNBR to proceed offering clients with excellent brief line service from Linden, Alabama, to Meridian, Mississippi, whereas enabling our Class I companions to create a brand new connection into the Southeast U.S.,” Jack Hellmann, G&W CEO, stated in a launch. “On the similar time, now we have enhanced a number of agreements associated to different G&W brief line railroads and are collaborating on the enlargement of our service to Alberta and the Alberta Industrial Heartland in conjunction with CPKC.”