CSX and CPKC railroads announced a partnership that will allow their two networks in the southeastern United States to handle significantly more freight. The partnership would include a section of track that links the two railroads together which is currently used for local traffic.
CPKC CEO Keith Creel stated that the two railroads plan to invest in upgrades to the rail line. These upgrades will allow for more traffic and provide a shorter path between manufacturing plants his railroad serves in Mexico and the Southeast.
CSX CEO Joe Hinrichs noted that the deal will provide shippers with a compelling transportation option. This new track will allow access to markets in the southeast, Texas and Mexico.
In addition, CPKC officials announced to investors that they expect this partnership to grow earnings per share this year at a mid-single digit rate.
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