Meridian Speedway
Encyclopedia
The Meridian Speedway is 320 miles (515 km) span of railroad track
between Meridian, Mississippi
, and Shreveport, Louisiana
. The Meridian Speedway is owned by the Meridian Speedway LLC (MSLLC). The MSLLC is, in turn, owned by Kansas City Southern (KCS) (who has a majority interest) and Alabama Great Southern Railroad
(a subsidiary of Norfolk Southern Railway
, who has a minority interest
).
(NS) announced an agreement to form a joint venture on KCS' Meridian Speedway between Meridian, Miss., and Shreveport, La. This rail line is an important direct rail connection moving rail traffic between the Southeast
and Southwest
U.S..
The joint venture
involves the contribution of KCS' 320-mile line between Meridian and Shreveport, to the joint venture company and an NS investment of $300 million in cash, substantially all of which will be used for capital improvements
to increase capacity and improve transit times over the line. The transaction was subject to regulatory review from the U.S. Surface Transportation Board
(STB), which was completed April 10, 2006. And on May 1, 2006, KCS and NS closed on the deal. By September 2007, about $135 million had been spent on the improvements. Since the completion of the first round of improvements, approximately 45 trains per day traverse the line.
Rail tracks
The track on a railway or railroad, also known as the permanent way, is the structure consisting of the rails, fasteners, sleepers and ballast , plus the underlying subgrade...
between Meridian, Mississippi
Meridian, Mississippi
Meridian is the county seat of Lauderdale County, Mississippi. It is the sixth largest city in the state and the principal city of the Meridian, Mississippi Micropolitan Statistical Area...
, and Shreveport, Louisiana
Shreveport, Louisiana
Shreveport is the third largest city in Louisiana. It is the principal city of the fourth largest metropolitan area in the state of Louisiana and is the 109th-largest city in the United States....
. The Meridian Speedway is owned by the Meridian Speedway LLC (MSLLC). The MSLLC is, in turn, owned by Kansas City Southern (KCS) (who has a majority interest) and Alabama Great Southern Railroad
Alabama Great Southern Railroad
The Alabama Great Southern Railroad is a railroad in the U.S. states of Alabama, Georgia, Louisiana, Mississippi, and Tennessee. It is an operating subsidiary of the Norfolk Southern Corporation , running southwest from Chattanooga to New Orleans through Birmingham and Meridian...
(a subsidiary of Norfolk Southern Railway
Norfolk Southern Railway
The Norfolk Southern Railway is a Class I railroad in the United States, owned by the Norfolk Southern Corporation. With headquarters in Norfolk, Virginia, the company operates 21,500 route miles in 22 eastern states, the District of Columbia and the province of Ontario, Canada...
, who has a minority interest
Minority interest
Minority interest in business is an accounting concept that refers to the portion of a subsidiary corporation's stock that is not owned by the parent corporation...
).
History
On December 2, 2005, KCS and Norfolk Southern RailwayNorfolk Southern Railway
The Norfolk Southern Railway is a Class I railroad in the United States, owned by the Norfolk Southern Corporation. With headquarters in Norfolk, Virginia, the company operates 21,500 route miles in 22 eastern states, the District of Columbia and the province of Ontario, Canada...
(NS) announced an agreement to form a joint venture on KCS' Meridian Speedway between Meridian, Miss., and Shreveport, La. This rail line is an important direct rail connection moving rail traffic between the Southeast
Southeastern United States
The Southeastern United States, colloquially referred to as the Southeast, is the eastern portion of the Southern United States. It is one of the most populous regions in the United States of America....
and Southwest
Southwestern United States
The Southwestern United States is a region defined in different ways by different sources. Broad definitions include nearly a quarter of the United States, including Arizona, California, Colorado, Nevada, New Mexico, Oklahoma, Texas and Utah...
U.S..
The joint venture
Joint venture
A joint venture is a business agreement in which parties agree to develop, for a finite time, a new entity and new assets by contributing equity. They exercise control over the enterprise and consequently share revenues, expenses and assets...
involves the contribution of KCS' 320-mile line between Meridian and Shreveport, to the joint venture company and an NS investment of $300 million in cash, substantially all of which will be used for capital improvements
Capital Improvement Plan
A Capital Improvement Plan , or CIP, is a short-range plan, usually four to ten years, which identifies capital projects and equipment purchases, provides a planning schedule and identifies options for financing the plan...
to increase capacity and improve transit times over the line. The transaction was subject to regulatory review from the U.S. Surface Transportation Board
Surface Transportation Board
The Surface Transportation Board of the United States is a bipartisan, decisionally-independent adjudicatory body organizationally housed within the U.S. Department of Transportation. The STB was established in 1996 to assume some of the regulatory functions that had been administered by the...
(STB), which was completed April 10, 2006. And on May 1, 2006, KCS and NS closed on the deal. By September 2007, about $135 million had been spent on the improvements. Since the completion of the first round of improvements, approximately 45 trains per day traverse the line.