Canadian National Railway (CN) will sell 252 miles of three Mississippi line segments to Grenada Railway and Natchez Railway, the non-carrier affiliates of V&S Railway and A&K Railroad Materials, because of falling passenger numbers.
CN has worked with the State of Mississippi since 2003 to improve passenger numbers on these three lines, but these efforts have not produced a large enough rise for CN to continue with its operation.
As part of the deal, rail services on the two longest routes will continue for a minimum of the next two years.
CN senior vice president southern region Jim Vena said that the company remains committed to the local area.
"CN recognises the importance of rail service to Mississippi and remains committed to the state," he said.
"We continue to operate nearly 600 miles of mainline track serving scores of Mississippi businesses and carrying Amtrak passenger service."
The transaction includes the 175 mile-long Grenada line, from the Mississippi and Tennessee border to Canton, the 66-mile Natchez line, from Brookhaven to Natchez and 11-mile Water Valley branch which intersects the Grenada line at WV Junction and extends to Coffeeville, Mississippi.