CSX Corp. has closed the first phase of a $525-million agreement with the Commonwealth of Virginia.
This transaction is part of the Commonwealth’s previously announced multi-billion dollar rail transportation initiative to improve service and infrastructure in the state.
“CSX is pleased to close the first phase of this transaction with the Commonwealth of Virginia,” James M. Foote, president and chief executive officer of CSX, said in a news release.
“This transaction highlights our ability to find creative ways to generate meaningful value from our assets while enhancing the safety and efficiency of passenger and freight rail service in a vital transportation corridor,” Foote added. “CSX looks forward to our continued partnership with the Commonwealth which will benefit commuters as well as our valued freight customers in the future.”
On March 26, CSX agreed to sell interests in three CSX-owned line segments to Virginia for $525 million. This first phase of the agreement is to convey a permanent land easement to enable the separation of passenger and freight rail operations in the Washington, DC to Petersburg, Va. corridor.
The remaining phases of the deal relate to line segments from Petersburg, Va. to Ridgeway, N.C., and from Doswell, Va. to Clifton Forge, Va. CSX anticipates closing on the remaining conveyances over the next two years.