Meridian railroads to play larger role in new commercial connection

Published 12:00 am Thursday, October 24, 2024

More of the nations goods and products may be passing through Meridian after the Surface Transportation Board approved applications by several railroads to create a new connection line.

The STB, on Oct. 17, approved the acquisition of a 52-mile segment of railroad between Meridian and Myrtlewood, Alabama by Canadian Pacific Kansas City from its current owners, Meridian & Bigbee Railroad. At the same time, transportation company CSX Corporation’s application to operate the rail lines east of Myrtlewood was also approved.

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Approval of the applications was the next step in an initiative first announced in June 2023 to create a Class 1 to Class 1 carrier connection linking Texas with the southeast. The STB defines Class 1 carriers as those with annual revenues in excess of $1.05 billion.

“We thank the Surface Transportation Board members for their careful consideration of this vision to create a new Class I corridor providing more efficient service for existing CPKC and CSX traffic, while introducing new competitive shipping options between Mexico, Texas and the U.S. Southeast for our customers,” said Keith Creel, CPKC President and CEO, in a news release announcing the approvals. “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.”

Joe Hinrichs, president and CEO of CSX, said the new connection will allow both companies to connect their customers to additional markets and help businesses grow.

“This new interchange with CPKC highlights our ongoing efforts to provide sustainable rail solutions and service excellence for our customers,” he said. “Once complete, the interchange will help drive long-term business growth allowing customers to have greater connectivity and efficiency to reach key markets in Texas, Mexico, and the U.S. Southeast—all while providing safe and reliable service.”

While CPKC and CSX look to provide national and international connectivity to their customers with the new rail line, Meridian & Bigbee Railroad will continue providing transportation service to local customers as well, said Michael Miller, CEO of Genesee & Wyoming Inc., which owns Meridian & Bigbee Railroad.

“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,” he said.

The Surface Transportation Board’s decision is set to go into effect on Nov. 16.