CSX reverses course on Howard Street Tunnel Project

The Jacksonville, Fla.-based Class I railway will not be moving forward with a project that would have allowed the tunnel, which connects to the Port of Baltimore, to accommodate double-stacked container trains.    Maryland Department of Transportation (MDOT) Secretary Pete Rahn sent a letter to U.S. Transportation Secretary Elaine Chao on Wednesday, informing the department that CSX will not be moving forward with the Howard Street Tunnel Project in Baltimore City, and therefore, Maryland will not be submitting an INFRA grant application for the project.
   The project would have allowed the 122-year-old Howard Street Tunnel, which connects to the Port of Baltimore, to accommodate double-stacked container trains.
   The Maryland Port Administration previously said how the project would break a bottleneck that impacts the entire East Coast, and would be key to meeting the Port of Baltimore’s rapidly growing container business.
   Although the project meets all four merit criteria for the INFRA grant program and the Hogan Administration supports the project, Maryland cannot pursue the project without the support of CSX, since the project was designed to improve CSX infrastructure, Rahn explained in the letter.
   Rahn described CSX’s decision to not move forward with the project to be “surprising and incredibly troubling, especially considering the countless hours and energy that have been expended by the Hogan Administration on this effort.”
   MDOT intends on working with the railway to explore other options to improve the flow of freight into and out of the Port of Baltimore, he said.
   CSX’s move to not go forward with the project was explained to MDOT as a business decision, but Rahn encouraged Chao and her team to contact the railway directly to better understand its reasoning.
   A CSX spokesperson told American Shipper Thursday, “Given the operating changes that CSX’s new leadership team has made over the last several months, and upon an updated evaluation, we determined that the Howard Street Tunnel project proposal no longer justifies the level of investment required from CSX and our public partners at this time.
   “Intermodal is an important part of CSX’s business and we are committed to supporting the freight rail needs of our customers and the Port of Baltimore through frequent, reliable, on-dock service,” the spokesperson said. “This business decision is in no way a reflection on the leadership of Governor Hogan, who has supported this initiative to the greatest degree possible on behalf of the businesses and citizens of Maryland. CSX appreciates the partnership we have developed with the State and we look forward to continuing the dialogue with our partners about our new operating plan.”