December 10, 2001

NCRR and CSX Transportation Resolve Property Dispute; Agreement Enhancements Freight and Passenger Rail Service

North Carolina Railroad Company (NCRR) and CSX Transportation Inc. (CSXT) have settled a 140-year ownership dispute over a portion of track near Raleigh, NC. The agreement opens the door for increased rail transit and economic development in the Triangle and eastern portions of North Carolina.

In September 2000, CSXT filed a property lawsuit disputing ownership of a 200-foot portion of the NCRR corridor between Raleigh and Cary that is used by CSXT freight trains and Amtrak passenger trains. The corridor also is proposed for use by the Triangle Transit Authority for its planned regional rail service.

Under the settlement, NCRR, which owns the 317-mile rail corridor between Morehead City and Charlotte, will be acknowledged by CSXT as owner of the corridor in question. In exchange, NCRR grants CSXT the right to continue its use of the corridor.
Both companies agree to continue to accommodate Amtrak. CSXT also may add up to two miles of double track to meet future capacity needs. The settlement also allows the Triangle Transit Authority to use the right-of-way north of the existing CSXT and Amtrak operations area between Raleigh and Cary to build TTA’s regional rail transit tracks.

"The resolution of this conflict ensures CSXT freight service to the northeastern part of the state," says NCRR Chairman Sam Hunt. "High quality freight service is an important component for sustained economic growth and development. It is an asset for the businesses already located northeast of Raleigh and can attract new industries considering locating in the region. This will also allow TTA to go forward to finalize their regional rail plans."

CSX Corporation Chairman John Snow said, "From the inception of the Seaboard Air Line Railway in the 1890s, this line has been a key part of our railroad and our company’s success. North Carolina and its industries are important to CSX and we look forward to a close working relationship with the North Carolina Railroad Company."
The NCRR’s mission is to manage, improve and protect North Carolina’s rail properties and corridors in a manner that will enhance passenger and freight service and promote economic development.

CSXT and its 35,000 employees provide rail transportation and distribution services over a 23,000 route-mile network in 23 states, the District of Columbia and two Canadian provinces. CSXT is a business unit of CSX Corporation, headquartered in Richmond, Va.

Photo available upon request.