Canadian Pacific Kansas City, CSX Corporation (NASDAQ: CSX) (CSX) and Genesee & Wyoming Inc. (G&W) today announced they have reached agreements that when completed will create a new direct CPKC-CSX interchange connection in Alabama.
Under the agreements announced today, CPKC would acquire and operate the segment of the MNBR between Meridian and Myrtlewood, Ala. and CSX would operate the lines currently leased by MNBR east of Myrtlewood. As a result, CPKC and CSX would establish a direct CPKC-CSX interchange at or near Myrtlewood, Ala. In exchange, G&W would acquire certain Canadian properties owned by CPKC and other rights. MNBR 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.
Terms of the transactions were not disclosed and will be addressed in definitive agreements that the parties have agreed to negotiate. Certain portions of the transactions are subject to regulatory review and approval from, or exemption by, the U.S. Surface Transportation Board.
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