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CSX Transportation is selling its 77-year-old rail-car repair shop in Raceland, Ky. Last week, Progress Rail Raceland Corp. reached an agreement with the Class I to acquire the facility. The transaction is expected to close tomorrow.

Most shop workers will continue to be employed by the Class I. However, some Raceland employees might be transferred, CSXT said. The shop employs about 200 workers and is certified by the Association of American Railroads to perform heavy car repairs.

The railroad no longer will need to perform as many heavy repairs after 2007 because car utilization has been improving and more shippers are purchasing or leasing their own cars, said CSXT Vice President of Mechanical Rich Regan in a prepared statement.

Progress Rail Raceland is a subsidiary of Progress Rail Services Corp., which operates more than 90 facilities in the United States, Canada and Mexico. Progress Rail supplies reconditioned car components, rail and other track materials, and maintenance-of-way equipment; and provides car and locomotive repair, car dismantling and rail welding services.