CSX Won't Pursue Howard Street Tunnel Expansion

Plans to expand a major railway tunnel have been put on hold.

CSX is not moving forward with plans to expand the Howard Street Tunnel, so that it can accommodate double stacked rail cars.

The news comes in a letter Maryland Transportation Secretary Pete Rahn sent to U.S. Transportation Secretary Elaine Chao in which he also tells Chao that the state won't be seeking $155 million in federal grants for the project.

The Hogan administration pursued the project as a way to improve the movement of freight into and out of the Port of Baltimore.

In a statment, CSX cites its new operating plan as the reason for the move.

"We determined that the Howard Street Tunnel project proposal no longer justifies the level of investment required from CSX and our public partners at this time," the statement read.

Rahn calls the decision "seriously troubling" and says the state will pursue other ways with CSX to improve the movement of freight into and out of the Port.

Statement from CSX

“Since March CSX has been adopting a new, and significantly different, operating plan called Precision Scheduled Railroading. The overall objective of this new operating plan is to drive better performance, which results in a superior service product for our customers and safer, more efficient operations.

Given the operating changes that CSX’s new leadership team has made over the last several months, and upon an updated evaluation, we determined that the Howard Street Tunnel project proposal no longer justifies the level of investment required from CSX and our public partners at this time.

Intermodal is an important part of CSX’s business and we are committed to supporting the freight rail needs of our customers and the Port of Baltimore through frequent, reliable, on-dock service. This business decision is in no way a reflection on the leadership of Governor Hogan, who has supported this initiative to the greatest degree possible on behalf of the businesses and citizens of Maryland. CSX appreciates the partnership we have developed with the State and we look forward to continuing the dialogue with our partners about our new operating plan.”