(The Associated Press circulated the following article on November 1.)
NATCHEZ, Miss. — Canadian National, parent of Illinois Central Railroad, has dropped plans to abandon a rail line between Natchez and Brookhaven.
Gov. Haley Barbour said Monday that CN will keep the line open for at least one year.
In June, CN announced it was considering possible abandonment of the line within three years.
Barbour said the reopening of Georgia-Pacific’s mills in Roxie and Gloster to process hardwood felled by Hurricane Katrina contributed to the railroad’s decision.
Georgia-Pacific’s action inspired CN to also act as a “good corporate citizen” by keeping its rail line functioning at least another year, Barbour said.
“They felt that they could do this to try and help” the state’s economy after the Aug. 29 hurricane, he said.
Canadian National is a client of Barbour Griffith & Rogers, the Washington lobbying firm Barbour helped found in 1991. Barbour said he severed financial ties to the firm when he took office as governor in January 2004.
Larry L. “Butch” Brown, executive director of the Mississippi Department of Transportation, said he is in the process of rescheduling a meeting with officials of rail companies about possible future operation of the line.
Brown said he will meet with officials of CN as well as companies looking to possibly operate the line as a local, or “short-line,” railroad.
“As far as time (to work out a deal) is concerned, we’re in good shape,” Brown said.
Woody Allen, chairman of the Economic Development Authority, was heartened by Barbour’s announcement, saying it “buys us more time” to fashion a deal to operate the rail line in the future.
That’s critical to getting many industries, especially manufacturing, into the area, Allen said.
“Just about everybody you talk to as far as manufacturing is concerned, wants to know about two things: your port and your railroad,” Allen said.
CN filed the notice in June because the federal Surface Transportation Board requires railroads to submit to the board, and publish, a map of their statewide system on a regular basis. If the railroad is even considering the possibility of abandoning a line in the next three years, the notice must also include that information.
Also, CN has experienced a decrease in revenues on the line in recent years.
If a deal with CN fell through, MDOT could operate the line, since the Legislature authorized it a couple of years ago to own and operate railroad lines.