NEW YORK (TheStreet) -- CSX Corp. (CSX) announced the completion of an agreement that grants it a permanent easement to operate over Louisville & Indiana Railroad's 106-mile rail corridor between Indianapolis and Louisville.
The transportation company paid $10 million for the permanent easement. The companies also finalized an operating agreement that provides for an additional $90 million in infrastructure upgrades over the next several years to improve the track structure and right of way along the route.
"CSX's investment of approximately $100 million will provide enhanced rail access for the Port of Indiana-Jeffersonville, increase capacity and efficiency along this corridor and improve connectivity to CSX's broader network," CSX President and COO Oscar Munoz said.
Munoz continued, "These critical infrastructure improvements include the installation of new rail, upgrades to the rail bed structure and bridge improvements to enhance safety and service for customers in the Midwest and provide more efficient rail service throughout the region."
Shares of CSX were falling 1.4% to $35.04 this afternoon.
TheStreet Ratings team rates CSX CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate CSX CORP (CSX) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income, revenue growth and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."