CSX Corporation and Canadian Pacific Kansas City (CPKC) have received approval from the Surface Transportation Board (STB) to establish a new railway connecting Mexico, Texas, and the Southeast U.S. This new connection, announced in an October 17 press release, is expected to improve shipping efficiency and market access in the region.
The approved deal involves the acquisition of rail lines operated by Genesee & Wyoming’s Meridian & Bigbee Railroad (MNBR). Under the agreement, CPKC will operate a 52-mile segment between Meridian, Mississippi, and Myrtlewood, Alabama, while CSX will manage the lines east of Myrtlewood. This creates a direct Class I interchange between the two railroads near Myrtlewood, Alabama, allowing for improved service to shippers in these important markets.
“With this new east-west Class I route, we are creating competition, providing a service that will take more trucks off the road, and growing rail transportation by expanding markets across the southern U.S., from Dallas to Atlanta and beyond,” said Keith Creel, CPKC President and CEO.
The new route will allow for better rail transportation and increase competition in U.S.-Mexico intermodal services, which could lead to fewer trucks on the road and expanded rail freight options. MNBR will continue to provide local service between Meridian and Myrtlewood, ensuring uninterrupted short-line operations.
“This transaction is a win for customers, who benefit from a new Class I connection in the growing Southeast U.S. and uninterrupted short line service from MNBR between Myrtlewood, Alabama, and Meridian, Mississippi,” added Michael Miller, G&W CEO.