News & Reviews News Wire CSX Transportation reaches deal, again, to sell Florida panhandle route NEWSWIRE

CSX Transportation reaches deal, again, to sell Florida panhandle route NEWSWIRE

By Bill Stephens | March 21, 2019

| Last updated on November 3, 2020


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CSXPanhandlesale
CSX line sales in Florida
CSX Transportation’s line sales are highlighted in yellow on the map.
TRAINS: Rick Johnson/Steve Sweeney
JACKSONVILLE, Fla. — CSX Transportation’s deal to sell its Florida Panhandle route to short line operator RailUSA is back on.

The newly created Florida Gulf & Atlantic Railroad is scheduled to make its debut over the former CSX route sometime between May 31 and June 14.

CSX and RailUSA gained federal regulatory approval of the sale of 373 miles of trackage across the Panhandle, effective Jan. 6, but the two sides couldn’t come to final terms and the deal fell apart at the finish line, according to people familiar with the matter.

The regulatory approval remained intact, however, and a CSX spokesman confirms that the railroads were able reach a new agreement on the sale of the Tallahassee Subdivision between Baldwin, Fla., and Chattahoochee, Fla., the P&A Subdivision between Chattahoochee and Pensacola, Fla., and portions of the Bainbridge Subdivision between Tallahassee and Attapulgus, Ga.

The Florida Gulf & Atlantic is hiring around 37 people to run the Tallahassee-based railroad.

It’s also sending 18 to 20 four-axle locomotives to an unused customer siding, where the units will be painted in a red, white, and blue scheme and prepared for operation on the Florida Gulf & Atlantic.

Florida Gulf & Atlantic is the second acquisition for RailUSA, a new company headed by Gary Marino, an industry veteran who founded shortline holding companies RailAmerica and Patriot Rail. RailUSA is a subsidiary of International Rail Partners. Both companies are based in Boca Raton, Fla.

CSX will retain trackage rights on the line in the event of an emergency or natural disaster that would require rerouting of traffic, but the Class I has no plans to regularly use the Florida Gulf & Atlantic as a through route.

CSX has identified about 4,500 miles of routes as candidates for sale or lease, a figure that includes the 1,325 miles of lines that have already been put out to bid, sold, or are in the process of being sold.

12 thoughts on “CSX Transportation reaches deal, again, to sell Florida panhandle route NEWSWIRE

  1. I just hope something can be worked to maybe restore AMTK service, used to ride the Sunset Limited before it was suspended, I went on AMTK’s website to find how to get to LA from JAX, seems I have to ride on three separate trains.

  2. Just an interesting option here: the line from JAX to Waycross and on past Valdosta is in good shape and fast. Where is the connection past Bainbridge to Flomaton and Mobile? and what shape is that in? I’m presuming that will be the CSX routing for JAX-NOL traffic. Can that be an option for an ORL-JAX-NOL Amtrak train?

  3. Kip, your positive comments appreciated, and I like your MRL analogy. However, CSX has been pretty emphatic ref their intentions toNOT use the panhandle line

  4. Kip, your positive comments appreciated & hope they pan out. The analogy to MRL would be a great scenario, but so far CSX has indicated they don’t plan to use the panhandle line for anything short of an Act of God.
    But my big concern is that FG&A will not have a direct connection at Baldwin with FEC & its huge (esp. intermodal) traffic base. Maybe there’s an enabling agreement that makes it possible.

  5. Almost an MRL South! Bet we’ll see low-priority CSX traffic become a regular when (and if) an economic recovery for business takes hold in in the east-west (N.O- JAX/MIA) market. Also, one can expect a future freight traffic path [re: MIA (FEC) to JAX, then FG&A to any connection to the west via CSX (from Mobile to Nu Awlins)].

    And if AMTRAK plays along, we may see a renewed interest in FG&A deriving guaranteed income from the overhead traffic restoring the route (coast to coast) that allows avoiding a Chicago connection. It’s also a restoration of service highly desired by our Gulf Coast community.

  6. I’d have a lot more confidence in this deal if a direct connection with FEC were established on the east end, and with CN / NS on the west.

    That’s why it would be great to hear something from Gary Marino and his distinguished Rail USA partners regarding their strategy to develop traffic on the Panhandle route. There is not an abundance of rail-oriented industry along this segment, but we as outsiders may be missing something that’s right in front of us. Certainly a strong industrial development focus will be needed to make things happen.

  7. Is I see it, CSX is getting rid of a line they no longer want, retain trackage rights over the new railroad, and ( if I read right) hasn’t given any rights in return.

    This WILL lead to a slow death for this raid. Connect with CSX on both ends ang only NS near the middle, how can it survive. As a casual observer, the only possible western connection besides CSE is with short line Alabama & Gulf Coast; and that is through a mill in Cantonment, FL just north of Pensacola.

    Unless they get trackage rights East from Baldwin to Jacksonville (to interchange with FEC & NS) and rights West to Mobile (to interchange with CN & NS); through the traffic will die and line will be downgraded. This will eliminate any chance of reviving passenger service over the Florida panhandle.

    Maybe that’s CSX’s plan. Kill off your service as well as that of your connections. I don’t want the business but you can’t have it either.

  8. It would be nice if RailUSA were to agree to host the “suspended” portion of the Sunset Limited, but that doesn’t complete the connection from Jacksonville to Nawlins. CSX would still be in the picture.

    What would it take for CSX to agree to host the Sunset Limited between the endpoint for RailUSA and Nawlins?

    And of course, under Anderson would Amtrak even be interested?

    The above comments are general in nature and do not form the basis for an attorney/client relationship. They do not constitute legal advice. I am not your attorney. Find your own damn lawyer.

  9. Will RailUSA maintain the tracks to class 4 standards or will they downgrade the routes. If the route is downgraded it will be tougher to bring back Amtrak service in the Panhandle. I am hoping RailUSA manages to attract more customers back to rail along the route and maybe do intermodal service.

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