(CSX issued the following news release on April 8.)
JACKSONVILLE, Fla. — CSX Transportation today announced the lease of a 32-mile segment of its track from Yulee to Fernandina, Fla., and from Yulee north to Seals, Ga., to First Coast Railroad (FCRD), a subsidiary of Rail Link, Inc. Jacksonville-based Rail Link is a subsidiary of Genesee & Wyoming Inc. of Greenwich, Conn.
The lease is effective April 9, at which time FCRD will take over operations. The rail lines will handle approximately 15,000 carloads annually, including pulp and paper, chemicals and agricultural products; freight cars will be interchanged with CSXT.
“This portion of our network consists mainly of paper products customers and is unique in that the majority of the traffic comes from three customers,” said Les Passa, CSXT vice president-strategic planning. “Often, segments of railroad with such specific needs are more efficiently operated by short line railroads. Larger railroads, like CSXT, are better at long-haul moves. So the larger railroads and their relationship with the short lines is an effective means of providing the most efficient service to rail customers.”
CSXT interchanges with more than 230 short line railroads across its 23- state system.
FCRD President Jim Benz said his railroad looks forward to operating the line.
“Paper products are an important commodity to the rail industry, and we are pleased to have the opportunity to operate in one of the most important freight locations in the state of Florida,” Benz said. “We are also pleased that CSXT has chosen us as the successful bidder in providing that critical service as well as serving other important merchandise customers along this branch line.”
CSXT and FCRD have visited most of the rail customers along this route to answer any questions and to ensure that their service will not be interrupted by the change of control.
CSX Corporation (NSYE: CSX), based in Jacksonville, Fla., owns one of the largest rail networks in the United States. CSX Transportation Inc. and its 32,000 employees provide rail transportation services over a 21,000-mile route network in 23 states, the District of Columbia and two Canadian provinces. CSX Corporation also provides intermodal operations through another subsidiary.
Rail Link, headquartered in Jacksonville, Fla., serves industrial customers at 29 locations in 11 states and owns 10 short line railroads. Its Southeastern operations include the Talleyrand Terminal Railroad, which serves the Jacksonville Port Authority’s Talleyrand Marine Terminal; the Golden Isles Terminal Railroad, which serves the Port of Brunswick, Ga.; and Savannah Port Terminal Railroad, which serves the Port of Savannah. Rail Link has more than 30 employees in its Jacksonville headquarters office, which includes a Customer Service Center that is staffed 24 hours a day, seven days a week.
Genesee & Wyoming Inc. is a leading owner of short line and regional freight railroads in the United States, Canada, Mexico, Australia and Bolivia. The Company’s subsidiaries operate in five countries on three continents over approximately 8,200 miles of owned, jointly owned or leased track. Its subsidiaries also operate more than 3,000 additional miles under track access arrangements.