Canadian Pacific Railway to sell southern Indiana rail line
Canadian Pacific Railway has agreed to sell its 92.3-mile track from Fayette to Bedford, Ind., to the Indiana Rail Road Co. for an undisclosed price.
Included in the terms of the sale are trackage rights over CSX from Chicago to Terre Haute and from Bedford to Louisville, Ky.
The transaction is expected to be completed in the first half of 2006, pending approval of the U.S. Surface Transportation Board. CPR said “the sale will generate a modest gain ' and is part of the company’s continuing efforts to streamline operations and drive efficiency. The sale will not have a material effect on earnings.”
“We see strong opportunities in Terre Haute and other on-line points to bring our unique brand of scheduled service and innovative marketing ideas to these customers. Latta Yard at Jasonville will eventually become a major hub of the combined system, and we will increase our presence in the Terre Haute market with high quality service,' said Thomas G. Hoback, Indiana Rail Road’s president and chief executive officer.
Indiana Rail Road will offer jobs to some of CPR’s 90-odd employees in southern Indiana, most of which work out of terminals at Jasonville and Terre Haute. CPR said it has sufficient need for employees at other locations within the Midwest to provide work for those that don’t join Indiana Rail Road.