Thursday, September 24, 2009

CSX to sell two rail routes to Massachusetts

Written by 

Massachusetts and CSX have agreed on the sale of CSX's Boston-Worcester, Mass., route to the commonwealth, opening up potential service capacity additions on the route and the extension of Massachusetts Bay Transportation Authority service to Worcester.

csx_logo.jpg.jpg

CSX would retain trackage rights on the route under the deal, and contribute $500,000 to help pay the agency's liability insurance, plus pay a $7.5 million deductible for any accident where the freight railroad is foundto be at fault. Liability concerns and disagreements kept the two sides from agreeing to any sale last year.mbta_logo2.jpg

Included in the deal is CSX's Fall River-New Bedford, Mass., route, in the southeast portion of the state, which also will be sold to the state and for which MBTA also plans to expand regional rail passenger service.

mike_ward.jpg

CSX will be paid an undisclosed sum for both routes, as well as for the Boston Terminal Running Track and a rail yard in South Boston. The deal also hinged on a commitment by state transportation officials to upgrade some bridges along the routes to allow for double-stack container train operations. Massachusetts also will help relocate CSX’s operations out of another rail yard in Boston.

“This is a great development for the commonwealth, its residents, its environment, and its economy,” said CSX Chairman, President, and CEO Michael J. Ward (pictured at left) in a statement. “In addition to commuter service, the plan will give the commonwealth a double-stack freight rail route that will help alleviate congestion on Massachusetts highways.”