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Arkansas Midland Railroad Co. Inc. (AKMD) recently filed an exemption notice with the Surface Transportation Board to lease and operate about 39.5 track miles owned by Union Pacific Railroad between Dermott and Warren, Ark.

Under an agreement with UP, the 60-mile short line also would lease car repair facilities at the Class I's McGehee, Ark., yard and obtain incidental overhead trackage rights to 5.6 track miles between Dermott and McGehee.

Formed in 1992, AKMD operates four former UP branch lines and interchanges with the Class I at North Little Rock, Gurdon, Lexa and Malvern, Ark. The short line moves more than 35,000 cars annually.

AKMD is owned by Pinsly Railroad Co., which also owns and operates the 64-mile Florida Central Railroad Co. Inc., 37-mile Florida Midland Railroad Co. Inc., 27-mile Florida Northern Railroad Co. Inc. and 17-mile Pioneer Valley Railroad Co. Inc.