CSX Corporation (CSX) announced this week that the company is soliciting bids on six rail segments.
The Class 1 says the move is part of a broader aim to drive asset utilization, improve efficiency and facilitate long-term value for the company.
The decision to market the non-core properties, which total about 650 miles, follows a detailed evaluation of each line and its potential to be operated more effectively by a highly qualified third party.
CSX is soliciting bids for the following non-contiguous properties:Massena Line: Line extending north from Syracuse, NY to Canada Baldwinsville Subdivision: Branch line west of Syracuse, NY West Albany and Rensselaer, NY: Collection of properties near Albany, NY Cumberland Valley: Feeder lines extending east of Corbin, KY Eastern North Carolina: Branch lines terminating in Grangers and Plymouth, NC Marietta Subdivision: Branch line extending north out of Parkersburg, WV
The Class 1 railroad said it will maintain a focus on ensuring local operators foster continuity of service for customers as it seeks buyers who wish to grow traffic along these lines.
CSX said no short-term impacts are expected to affect customers as a result of this effort.
"CSX is reviewing every aspect of the company's network to be sure that each asset is maximized for efficiency and adds value to our company's long-term business needs," said James M. Foote, president and CEO. "We believe these efforts will identify a robust pipeline of opportunities that will deliver material value to CSX over the next several years."
The initiative will allow CSX to focus on improving the operational performance of its core network, enhancing asset utilization, cutting down on transit times and facilitating increased reliability.
"These lines may be purchased by one buyer, multiple buyers or may not be sold at all, depending on the bids received," CSX added.
Prospective bidders can visit this site to express their interest.