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Buffalo & Pittsburgh Railroad Inc. (BPR) recently reached an agreement with CSX Transportation under which the 280-mile short line will lease and operate a 41-mile line between Glenshaw and New Castle, Pa.

BPR currently operates over a 25-mile portion of the line between Eidenau and New Castle, where the short line interchanges with CSXT. A Glenshaw-to-Bakerstown portion has not been used for more than two years and CSXT sought Surface Transportation Board approval to discontinue service on that line. Per the agreement, CSXT notified the board Nov. 3 it would withdraw its discontinuance petition after consummating a lease with BPR.

Although the Eidenau-to-New Castle line registered 1,200 local carloads during 2002 and 750 local carloads during 2003's first 10 months, BPR expects to use the entire 41-mile line to interchange more than 20,000 annual carloads with CSXT. The short line plans to seek state funds to help rehabilitate some of the track.

Owned and operated by Genesee & Wyoming Inc., BPR recently filed an exemption notice with STB seeking approval for the transaction. The board expects to grant the exemption Dec. 23 pending labor-protection conditions.