(The Associated Press circulated the following article on April 10.)
KANSAS CITY, Mo. — Railroad operators Kansas City Southern and Norfolk Southern Corp. said Monday the U.S. Surface Transportation Board approved their Meridian Speedway joint venture.
On Dec. 2, the two companies agreed to form the joint venture, aimed at increasing capacity and improving service on Kansas City Southern’s Meridian Speedway between Meridian, Miss., and Shreveport, La., an important direct rail connection between the Southeast and Southwest.
Under the terms of the agreement, Kansas City Southern will contribute the 320-mile line, and Norfolk Southern will invest $300 million in cash for capital improvements to increase capacity.
Shares of Kansas City Southern inched up 7 cents to close at $24.06 on the New York Stock Exchange.
Norfolk Southern shares fell 27 cents to close at $54.13 on the NYSE.