The Yellowhammer State looks like it might be receiving an additional railroad interchange and freight corridor adding to its already booming economy. The new corridor will serve to connect Mexico, Texas, and much of the southeastern United States.
The new corridor is a product of an agreement between Canadian Pacific Kansas City, CSX Corp., and Genesee & Wyoming.
“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.
Canadian Pacific and CSX will operate areas of the Meridian & Bigbee Railroad. The railroad runs between runs between Meridian, Miss., and Montgomery.
“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 Jack Hellmann, G&W CEO.
“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.
Terms of the transactions were not disclosed. Certain portions will also have to be approved by the U.S. Surface Transportation Board.
Austen Shipley is a staff writer for Yellowhammer News.
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