CSX and CPKC hope the deals will reduce friction for freight clients. Credit: Shutterstock.

Canadian Pacific Kansas City (CPKC) and CSX Corporation have reached an acquisition agreement with Genesee and Wyoming (G&W) to create a new freight corridor which will connect the US Southeast region with Texas and Mexico. 

When completed, CPKC and CSX will each acquire or operate portions of Meridian and Bigbee Railroad (MNBR) in Alabama and Mississippi. 

The MNBR runs between Meridian, MS and Montgomery, AL and currently is operated under a combination of ownership and operating agreements.

When the deal is complete, CPKC and CSX will establish a direct CPKC-CSX interchange at or near Myrtlewood, AL. In exchange, G&W will acquire Canadian properties owned by CPKC in Alberta. 

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MNBR is set to receive rights to continue to provide local service to existing customers on former MNBR-owned lines and connect with other railroads without interchange restrictions. 

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CPKC president and CEO Keith Creel said: “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 US Southeast. 

“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.” 

G&W CEO Jack Hellmann said: “We are pleased to have entered into agreements with CSX and CPKC that will enable MNBR to continue providing customers with outstanding short-line service from Linden, Alabama, to Meridian, Mississippi, while enabling our Class I partners to create a new connection into the Southeast US.”