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Yesterday, CSX Transportation announced it reached a settlement with the city of Baltimore on a lawsuit stemming from a July 2001 train derailment and fire in the city’s Howard Street Tunnel. The case was scheduled to go to trial March 13.

CSXT agreed to pay the city $2 million for accident-related costs and “increase communication” about hazardous and non-hazardous rail shipments, such as by sharing access to police radio frequencies, real-time surveillance images from tunnel security cameras and information about shipping patterns to help the city plan security measures. The Class I and city also will jointly ask federal and state regulatory authorities to inspect the tunnel.

“Rather than continuing to litigate, both parties have agreed to dedicate shared resources and energy to further enhance safety and security in the city,” said CSX Corp. Chairman, President and Chief Executive Officer Michael Ward and Baltimore Mayor Martin O'Malley in a joint statement.

On Feb. 22, Baltimore officials will ask city Board of Estimates members to approve the settlement.