05:35 PM EDT, 10/17/2024 (MT Newswires) -- Canadian Pacific Kansas City ( CP ) (CP.TO, CP) edged up in after-hours New York trade after its and CSX (CSX) after close Thursday said the U.S. Surface Transportation Board (STB) approved CSX's and CPKC's acquisition of rail lines operated by Genesee & Wyoming's Meridian & Bigbee Railroad (MNBR), creating a new direct CPKC-CSX interchange connection in Alabama.

CPKC will acquire and operate across the 52-mile segment between Meridian, Miss., and Myrtlewood, Ala., currently owned by MNBR, while CSX will operate the lines currently operated by MNBR east of Myrtlewood. As a result, CPKC and CSX will establish a direct Class I-to-Class I interchange at or near Myrtlewood and connect shippers in Mexico, Texas and the Southeast U.S. MNBR will continue to provide local service to customers between Meridian and Myrtlewood.

"With this new east-west Class I route, we are creating competition, providing a service that will take more trucks off the road, and growing rail transportation by expanding markets across the southern U.S., from Dallas to Atlanta and beyond," said CPKC President and CEO Keith Creel.

Canadian Pacific Kansas City ( CP ) shares were last seen up US$0.02 to $81.20 after hours. They closed down $0.67 to $112.05 on the Toronto Stock Exchange.