The Surface Transportation Board has approved Canadian Pacific Kansas City (CPKC) and CSX Transportation’s acquisition of the Meridian & Bigbee Railroad from Genesee & Wyoming, enabling the two major rail lines to establish a new direct connection in Myrtlewood, Alabama. The decision takes effect on November 16.
In separate rulings, the board conditionally approved CSX’s acquisition of 93.7 miles of track between Burkville and Myrtlewood, Alabama, and CPKC’s acquisition of 50.4 miles between Myrtlewood and Meridian, Mississippi. Both approvals were unanimous, with board members Patrick Fuchs and Michelle Schultz offering additional comments.
CPKC and CSX first announced the plan in June 2023, which would create a continuous route connecting the Southeast with Texas and Mexico and enhance CSX’s access to Mexico through CPKC. CSX will resume operations on the Burkville-Myrtlewood segment, which it had previously leased to Meridian & Bigbee, while CPKC will take over the Myrtlewood-Meridian section. Meridian & Bigbee will still provide local service on that line. Initially, the railroads expected to interchange one pair of trains daily for at least five years.
The board determined that the deal is unlikely to reduce competition or create a monopoly, and any potential minor anticompetitive effects would be outweighed by the public benefits, including more efficient and direct rail service. The decision also requires CSX to maintain its Selma, Alabama gateway, ensuring one shipper continues to have access to Norfolk Southern for five years. Additionally, it includes protections for affected employees and requires noise reduction measures for the CSX portion.
Requests for additional conditions by Canadian National Railway (CN) and Amtrak were denied. CN wanted CPKC to report traffic on its Jackson, Mississippi line in case of congestion, but the board rejected the request, stating the low traffic volume made issues unlikely. Amtrak’s request to limit freight train lengths on the “Meridian Speedway” was also denied, as CPKC argued longer trains could be used without disrupting passenger services.
Norfolk Southern had initially requested additional conditions but withdrew after successful discussions between the involved parties.
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