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Progressive Rail Inc. recently filed an exemption notice with the Surface Transportation Board to lease from Union Pacific Railroad and operate 17 track miles in Dakota and Scott counties, Minn.

The track comprises a branch line between Northfield and Canon Falls, and an industrial lead in Faribault.

Under an agreement, the 14-mile short line also would obtain UP's incidental trackage rights over Canadian Pacific Railway's Northfield-to-Comus line, and Iowa, Chicago and Eastern Railroad Corp.'s Comus-to-Faribault line.

Progressive Rail serves shippers in the Airlake Industrial Park in Lakeville, Minn., and interchanges with CPR. The short line recently rebuilt one SW-1200 and SD-39, and three SW-1500 locomotives to handle increasing business.