This deal has Pan Am levels of complexity.
To make things "simple:"
- The Meridian & Bigbee is split into an eastern half and a western half. The eastern half from Burkville to Myrtlewood is leased from CSX. The western half from Myrtlewood to Meridian is owned outright by the Meridian & Bigbee.
- The eastern half will be returned to CSX. The western half will be purchased by CPKC, but the Meridian & Bigbee will retain trackage rights over the western half to serve local customers. (They won't have trackage rights over the eastern half.)
- The Meridian & Bigbee is owned by Genesee & Wyoming which also owns the neighboring Alabama Gulf Coast. The Alabama Gulf Coast will be receiving trackage rights over CSX to maintain an interchange with CPKC and the Meridian & Bigbee at Myrtlewood.
- In addition, Genesee & Wyoming will be receiving CPKC's Hoadley Sub between Jackson and Homeglen, Alberta, and trackage in the Scotford, Alberta area.
Link to the STB docs: plenty of great details concerning upgrades, traffic count, etc...
CSX App: https://dcms-external.s3.amazonaws.com/ ... 307262.pdf
CPKC App: https://dcms-external.s3.amazonaws.com/ ... 307274.pdf
There are also a few notices of exemptions concerning the more minor parts of the transaction.
My first two initial thoughts are:
1. To what degree will this impact the current CSX-CPKC interchange routes via St. Louis and New Orleans? From my current understanding, the ex-Gateway Western/Springfield Line is mostly CSX-interchange traffic nowadays, while the Gulf Coast Route has been continually downgraded ever since Katrina. If CPKC and CSX get this line up to 40 (or even 60?), could we see large-scale traffic diversions from these routes?
2. Could this style of acquisition be exported to other railroads? My first thought is the Quebec Gatineau Railroad in Quebec. Imagine, CPKC buying the track for intermodal trains, but the Quebec Gatineau retaining local freight rights?
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