CSX Transportation is planning to build a new rail inspection yard in Hopkinsville-Christian County, Kentucky, US, to stage trains for inspection and fuelling.
The new facility will expand the capacity and efficiency of the network and allow CSX to serve the increased production levels of customers in Kentucky.
The facility also offers the infrastructure to support the ongoing growth of commodities along the entire corridor spanning Evansville, Indiana, Birmingham and Chattanooga.
Designed to support coal unit trains servicing local Kentucky mines, the new yard will also allow businesses to efficiently transport products to regional markets and will initially offer on-site employment for more than 50 people.
CSX state relations resident vice-president David Hall said: "More efficient rail service to Kentucky customers means a more vibrant economy and more opportunities for business expansion throughout the state."
The company will work with the community to build the new yard, and expects to complete construction by 2015 to meet the increased demand on the growing freight rail corridor that stretches from the Southeast to the Midwest.
CSX Transportation is a subsidiary of rail-to-truck transload services provider CSX that invested over $98m in its Kentucky network in 2013.