The Surface Transportation Board this month approved letting CSX share a 106-mile line north of Louisville owned by Louisville & Indiana Railroad Co. The planned improvements will cost the CSX $100 million, with $90 million for track improvements and $10 million to L&I for the rights to use the tracks.
The track upgrades would allow trains to travel 60 miles per hour and carry more weight. The planned upgrades will improve operational efficiency with more direct transit across Ohio, Indiana and Kentucky, and reduce congestion on certain CSX lines across these states. Since 2000, the CSX trains have been using a 52-mile portion of the corridor between Louisville, Kentucky and Seymour, Indiana en route to Cincinnati. CSX believes it will save nearly $12 million a year as a result of avoiding congested rail lines near Cincinnati and other changes to its operations.
It is always interesting to note how and why Class I and short line carriers come together to make agreements such as this. Several different types of relationships may exist between Class I and short line railroads to include handling, junction settlement, switch carrier, track lease agreements, interline, and rule 11 arrangements. If it sounds complicated, let AMTR review your freight to ensure the proper rates are always applied. For more information on the changes facing the cities of Louisville and Seymour, click here.