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KCS, Norfolk Southern to start Meridian Speedway joint venture

KCS, Norfolk Southern to start Meridian Speedway joint venture

   Kansas City Southern and Norfolk Southern Corp. have agreed to establish a joint venture company to increase capacity on the Meridian Speedway rail connection between Meridian, Miss. and Shreveport, La.

   Pending regulatory approval, KCS will contribute the 320-mile rail line, while Norfolk Southern will invest $300 million for capacity enhancements such as extended sidings and stretches of double track.

   “The increased capacity will provide both railroads with the ability to handle greater volumes and improve service for intermodal customers moving traffic between the southeast and southwest parts of the U.S., and for all other traffic including intermodal between the Southeast and KCS’ rail network including Mexico,” KCS and Norfolk Southern said in a joint statement.

   KCS will own 70 percent of the joint venture with Norfolk Southern owning the remaining 30 percent.