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CSXT, Delaware and Hudson Propose Joint Use Arrangement for Improved Service


Released: Apr 30, 2010

JACKSONVILLE, Fla. And CALGARY, Alberta - April 29, 2010 - 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.

About CSX Transportation:
CSX Transportation is a principal operating company of CSX Corporation. CSX Corporation, based in Jacksonville, Fla., is a leading transportation company providing rail, intermodal and rail-to-truck transload services. The company's transportation network spans approximately 21,000 miles with service to 23 eastern states and the District of Columbia, and connects to more than 70 ocean, river and lake ports. More information about CSX Corporation and its subsidiaries is available at www.csx.com.

About Canadian Pacific:
Canadian Pacific, through the ingenuity of its employees located across Canada and in the United States, remains committed to being the safest, most fluid railway in North America. Our people are the key to delivering innovative transportation solutions to our customers and to ensuring the safe operation of our trains through the more than 1,100 communities where we operate. Come and visit us at www.cpr.ca to see how we can put our ingenuity to work for you.

Media Contacts:
CSX Transportation
Gary Sease
Director-Corporate Communications
877-835-5279
904-359-1234 after hours media pager

Canadian Pacific
Mike LoVecchio
Sr. Manager - Media Relations
778-772-9636 tel
416 814-0948 24/7 media pager