Transportation company CSX has concluded the initial phase of a $525m rail deal with the Commonwealth of Virginia in the US.
The acquisition is part of Virginia’s previously announced multibillion-dollar rail transportation initiative to improve passenger service and infrastructure in the state.
Last month, CSX has signed agreements with the Commonwealth of Virginia to sell certain interests in three CSX-owned line segments.
The company said that the first phase deal is for the conveyance of a permanent land easement to separate passenger and freight rail operations in the Washington, DC to Petersburg, Virginia corridor.
CSX president and CEO James Foote said: “This transaction highlights our ability to find creative ways to generate meaningful value from our assets while enhancing the safety and efficiency of passenger and freight rail service in a vital transportation corridor.
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“CSX looks forward to our continued partnership with the Commonwealth, which will benefit commuters, as well as our valued freight customers in the future.”
The remaining phases of the transaction are expected to be concluded over the next two years.
These line segments run from Petersburg, Virginia, to Ridgeway, North Carolina, and from Doswell to Clifton Forge.
In November 2020, CSX signed a definitive agreement to acquire New England’s Pan Am Railways, a US-based regional railroad system.
Pan Am owns and operates a nearly 1,200-mile railway network in the New England region, as well as has a partial interest in the more than 600-mile Pan Am Southern system.
The transaction will expand CSX’s reach in Connecticut, New York and Massachusetts while adding Vermont, New Hampshire and Maine to its existing 23-state network.