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Yesterday, Kansas City Southern Railway Co. (KCSR) announced it leased the 21.5-mile Redwood Branch in Mississippi to The Watco Cos. Inc.

On Jan. 8, new Watco short line the Vicksburg Southern Railroad Inc. will begin operating the line between Ballground Yard and north of Vicksburg Yard, and between points near Cedars, Miss. In April, Watco launched the Mississippi Southern Railroad — the company’s first small road in the state — after leasing track from KCSR.

“We believe this expanded presence in Mississippi will allow us to continue to grow with the businesses and industries in the state, and further expand the many good relationships we have established over the last six months," said Watco President and Chief Operating Officer Terry Towner in a prepared statement.

The deal includes locomotive facility buildings and seven tracks in Vicksburg Yard.

“With the execution of these leases, KCSR will free up resources to focus its energies on our core lines for the movement of NAFTA traffic,” said KCSR President and Chief Executive Officer Art Shoener.

In summer, Watco leased five branch lines from KCSR in Louisiana, Arkansas and Alabama, and launched the Louisiana Southern, Arkansas Southern and Alabama Southern railroads to operate the lines.