The United States Surface Transportation Board (STB) has approved a major deal between top railway operators CSX and Canadian Pacific Kansas City (CPKC). This was reported by the railway transport news portal Railway Supply.

Surface Transportation Board
Photo: Wabtec

This project creates a direct route linking the rail networks of both companies, expanding transport options across the United States, Mexico, and Canada.

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Under the agreement, CPKC acquires an 80 km section of the Meridian & Bigbee Railroad (MNBR) line, connecting Meridian in Mississippi to Myrtlewood in Alabama. Meanwhile, CSX gains control of a 150 km line from Myrtlewood to Burkeville, Alabama. This railway corridor will serve as a crucial link for logistics, simplifying cargo transport and offering significant benefits for businesses.

The Surface Transportation Board anticipates that the new route will enhance competition among transportation operators. The deal aims to reduce highway freight volumes, promoting a shift toward rail transport. This strategy opens up additional opportunities for customers seeking logistical efficiency, cost savings, and environmentally sustainable solutions.

Despite the acquisition of MNBR sections, the company will continue serving local clients along the Meridian – Myrtlewood route. This arrangement ensures stability for local businesses and maintains essential service options. Meanwhile, CSX and CPKC plan to strengthen freight operations in emerging markets, fostering growth in the nation’s transportation infrastructure.

The agreement becomes effective on November 16, 2024, when the railway corridor will be fully operational, providing businesses and transport operators with new opportunities.

Benefits of the Deal for the Surface Transportation Board

The new corridor, backed by the Surface Transportation Board, will significantly increase freight volumes and attract customers seeking alternatives to highway transport. This will not only enhance delivery efficiency but also unlock access to new markets.

How the Surface Transportation Board Strengthens Market Competition

The Surface Transportation Board-approved deal aims to improve transportation links and foster market competition. This will help reduce logistics costs for customers while strengthening the market position of railway companies.

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