Canadian National to lease Mobile, Ala., trackage to new short line

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WASHINGTON — Canadian National will lease trackage in Mobile, Ala., to a new short line, Alabama Export Railroad, according to an Aug. 12 regulatory filing.

The Alabama Export Railroad will operate 12.1 miles of former Illinois Central trackage in downtown Mobile and serve eight customers on the line.

Alabama Export plans to work closely with the Port of Mobile, online shippers, the local community, and connecting railroads to develop the freight potential of the leased trackage.

The trackage being leased includes 6.6 miles of the Beaumont Sub, from the State Docks on the Mobile River to Belt Junction, along with the Frescati Lead, some of which is out of service.

The railroads said Alabama Export Railroad will be able to provide more economical, efficient, and responsive service than a Class I railroad could provide.

Alabama Export will be a wholly owned subsidiary of the Mississippi Export Railroad, a 42-mile short line that runs between Evanston and Pascagoula, Miss. The IC has a one-third ownership interest in the Mississippi Export Railroad.

The transaction, which is expected to qualify for an exemption from review by the U.S. Surface Transportation Board, should close within 30 days.
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