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CSX Extra: Clarification on Shortline Sales

CSX Transportation has finalized property sales totalling $53 million.  Of that amount $43 million involved the sale of two shortline railroads and the conversion of two leased roads to formal sales.  Properties of some other type were sold totalling $10 million.

Earlier this year, 2018, CSX did a review of 8,000 miles of their approximately 21,000 miles of railroad to determine if it would be better to keep or sell.

According to Trains Magazine and Progressive Railroading, CSX decided to put up six shortlines totalling 850 miles.  So, four of those shortlines are still up in the air.

One delay in closing the sales on those remaining four, might be that the various shortline conglomerates in the bidding might go from being Class II companies to Class I companies. 

Apparently reclassification would cause their costs to go up as far as financial reporting and federal regulations are concerned. 

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