CSX Transportation, Inc. (CSXT) and Canadian Pacific subsidiary Delaware & Hudson Railway Company (D&H), have filed an application with the Surface Transportation Board (STB) for regulatory approval of a joint use arrangement that improves operating efficiency for both CSXT and D&H.
In their application, the companies said that the proposed transaction would strengthen the competitive capabilities of both CSXT and D&H by allowing them to operate more efficiently and to offer better service products. They also said it would create a more efficient corridor for traffic moving between eastern Canada and the eastern United States, reducing fuel consumption.
Under the proposed joint use agreement, CSXT and D&H would use jointly a north-south rail corridor linking the New York City metropolitan area with the international border at Rouses Point. The joint use corridor would include a line operated by the D&H between Rouses Point Junction (near the Canadian border) and Albany, N.Y., and CSXT’s line between Albany and Fresh Pond, N.Y.
D&H would operate all trains between Saratoga Springs, N.Y., and Rouses Point. Both railroads would conduct their own train operations between Albany and Saratoga Springs. Some of this traffic now moves over CSXT’s Massena Line, which runs from Syracuse, N.Y., to Huntington, Province of Quebec. The joint use arrangement would improve the transit time of this traffic to Albany by more than 45 percent, reduce transit miles by 35 percent and gross ton miles by 442 million.
The proposed joint use arrangement also calls for CSXT to handle certain D&H freight moving between Albany, N.Y., and the New York City boroughs of The Bronx and Queens, and enables D&H to offer significantly greater frequency of service between Montreal and metropolitan New York City. D&H also will retain previously STB approved trackage rights between Albany and Fresh Pond.
CSXT and D&H will continue to serve all customers that they serve today, including local shippers on CSXT along the Massena Line. No shipper will lose a rail competitive option as a result of the proposed transaction.