(The Associated Press circulated the following story on January 7.)
CHARLESTON, W.Va. — CSX Transportation said Friday it plans to lease a 158-mile segment of track between Grafton and Cowen to a Kansas-based transportation holding company.
The lease with Watco Companies Inc. will be effective March 25, CSX said.
About 90 CSX employees will be affected by the move. They will be given the option to either work for Watco or to bid on other CSX positions, CSX spokeswoman Jane Covington said.
“We anticipate there will be employment for everybody,” she said.
Watco, based in Pittsburg, Kan., owns 10 shortline railroads in 11 states. CSX Transportation, a unit of CSX Corp., operates in 23 states, the District of Columbia and two provinces in Canada.
“This is a unique segment of railroad because of the customer base and the geography,” said Les Passa, vice president of strategic planning for CSX Corp.
Passa said railroad segments with specific needs can be operated more efficiently by shortline railroads, while larger railroads “are better at long haul moves.”
Coal is one of the route’s biggest products.
“Coal is an important commodity to the rail industry and to our country, and we are pleased to have the opportunity to operate in one of the most important coal-producing states,” said Rick Webb, chief executive officer of Watco. “We are also pleased that CSXT has chosen us to provide that critical service, as well as serving other important merchandise customers along this route.”
CSX announced last year it was seeking bids from shortline railroads for the Grafton-Cowen route and another segment between New Martinsville and Cumberland, Md. Covington said company officials later decided to lease only the Grafton-Cowen route. CSX will continue to operate the other route.
Sen. Jay Rockefeller, D-W.Va., had asked the company to reconsider its plans, saying he was concerned about the impact on CSX workers on those routes.