Canadian Pacific to sell 92-mile line to Indiana Rail Road (11/9/2005)
11/9/2022Six months after announcing plans to find an operator for its Latta Subdivision or sell the line serving southern Indiana and northern Kentucky, Canadian Pacific Railway has arranged a deal addressing the latter. The Class I reached an agreement to sell the 92.3-mile line between Fayette and Bedford, Ind., to Indiana Rail Road Co. (INRD).
Expected to close in first-half 2006 pending Surface Transportation Board approval, the transaction includes trackage rights over CSX Transportation from Chicago to Terre Haute, Ind., and Bedford to Louisville, Ky.
The 155-mile short line currently interchanges with CPR, CSXT, Canadian National Railway Co., Norfolk Southern Railway, Indiana Southern Railroad, Central Railroad Co. of Indiana and Louisville & Indiana Railroad Co. The transaction also would provide INRD a connection to Paducah & Louisville Railway Inc.
“We see strong opportunities in Terre Haute and other online points to bring our unique brand of scheduled service and innovative marketing ideas to these customers,” said INRD President and Chief Executive Officer Tom Hoback in a prepared statement. “Latta Yard at Jasonville will eventually become a major hub of the combined system.”
CPR attempted to seek an operator or sell the line to improve service in southern Indiana and the Louisville market.
“We believe [the sale] will benefit the shippers in the region along with ensuring ongoing employment for the employees on the line either with INRD or elsewhere on CPR’s system,” said Dave Craig, CPR general manager of business development.
Source: Progressive Railroading Daily News