As part of the series of proposed transactions, CPKC and CSX would each acquire or operate portions of Meridian & Bigbee Railroad (MNBR), a G&W-owned railway in Mississippi and Alabama, to establish a new freight corridor for shippers that connects Mexico, Texas and the U.S. Southeast.
The MNBR runs between Meridian, Mississippi, and Montgomery, Alabama, and currently is operated under a combination of ownership and operating agreements.
Under the agreements, CPKC would acquire and operate the segment of the MNBR between Meridian and Myrtlewood, Alabama, 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, Alabama. 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.
“This strategic acquisition will bring more shipping options to intermodal, automotive and other customers by providing a new, efficient corridor connecting expanding markets in Mexico, Texas and the U.S. Southeast,” said Keith Creel, CPKC president and CEO. “With this new east-west connection taking advantage of each railway's routes and service, we can extend our reach converting more freight traffic to rail and off our highways.”