WASHINGTON — Federal regulators have accepted the applications Canadian Pacific Kansas City and CSX Transportation have filed seeking permission to acquire and operate Genesee & Wyoming short line Meridian & Bigbee.
The 168-mile MNBR will connect the CPKC and CSX systems via a new interchange at Myrtlewood, Ala., that will create a shortcut linking Mexico and Texas with the Southeast.
The Surface Transportation Board today said the separate deals involving CPKC, CSX, and G&W qualify as a minor transaction based on its preliminary review of the paperwork the railroads filed last month.
The board set a procedural schedule for the review of the deals, said it would require the railroads to submit more information, and that the transactions would have to undergo an environmental assessment under federal law.
The supplemental information is due Nov. 20; other parties wishing to participate in the review are due Nov. 24; and all comments, protests, requests for conditions, and any other arguments against the transactions are due by Dec. 8. Responses to those comments are due by Jan. 8.
The date the record closes for the proceedings has yet to be determined, but the board must issue a decision no later than 45 days after the close of the record. The decision would become effective 30 days after it is issued. The board cannot issue a decision until the environmental assessment is complete.
Today’s decision denies Norfolk Southern’s request that the board should suspend review of the three-railroad deal. NS had argued that the various transactions should be considered as a single deal with wide-ranging impacts.
The Meridian & Bigbee, or MNBR, owns the 50.4-mile route west of Myrtlewood and leases from CSX the 107 miles between Myrtlewood and Burkville, Ala., which is just west of the CSX hub of Montgomery, Ala. MNBR operates the 10 miles between Burkeville and Montgomery via overhead trackage rights on CSX.
CPKC subsidiary Kansas City Southern will acquire the 50.4-mile segment of the MNBR between Meridian and Myrtlewood, which it’s calling the Western Line. MNBR will continue to provide local service on the route after the transaction.
In a separate transaction, CSX will resume operations on its line between Myrtlewood and Burkville — dubbed the Eastern Line — which has been leased to MNBR since 2003. As part of that transaction, MNBR will cease operations on the Eastern Line.
CPKC and CSX said the transactions will enable them to make the investments necessary to create a Class I railroad freight corridor that will expand shipping options for intermodal, automotive, and forest products moving between the Southeast and Texas and Mexico.
The board is requiring CPKC and CSX to submit additional information in order to help regulators decide whether any conditions might be warranted given the potential change in traffic flows.
CPKC was ordered to provide information about Kansas City Southern’s commitment to keep the Laredo, Texas, gateway open on commercially reasonable terms. CPKC also was ordered to submit detailed data on potential origins and destinations for traffic it would interchange with CSX and other railroads.
CSX and CPKC also must provide the board with more information about the transaction’s potential impact on Amtrak as well as more detail on their plans to upgrade the Meridian & Bigbee.
Probably will be another train as the 8500 foot limit on the speedway will rapidly increase traffic. Longer trains and especially having to interchange at Myrtle wood will leave parked trains there. Myrtlewood population less than 100 does not set well for layover crews. Maybe eventually CPAK and CSX might change interchange to Linden?i
Eventually one additional siding Meridian – Myrtlewood and maybe another on CSX Linden – Montgomery? In the long run the Meridian – FTW train might use the route to ATL a. At a 60 MPH route the time Meridian – ATL would be less than the present NS route thru BHM.
Why the H*** do they need another environmental assessment. It’s all ready a operating railroad. It’s just going to be operated by a different company. It’s not like they are building a new line in the middle of no where. Just more government sticking there nose into it where it should’n be and more red tape.
Why does the map provided by CPKC still show the pre-Macaroni line dogleg through Flatonia?