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Grenada Railway Honored in 2021 Short Line and Regional Railroads of the Year



Grenada Railway Locomotive


In November 2011, the Grenada Railway was headed toward total abandonment. This Class III, once part of the longest railroad in the world, was going to be forgotten. It would take a tremendous effort from members of the community to change the railway’s fate. Known as Grenada Railroad (GRYR) today, the track has been revitalized with public and private investment and is once again a cornerstone of the Mississippi economy.

Turning the clock back to 1851, then-prairie lawyer Abraham Lincoln is in Springfield, Ill., lobbying for the construction of the Illinois Central Railroad (IC). A land grant had been approved in the late 1840s by the federal government to establish a rail line that connected Mississippi to Chicago, but this decision was not unanimous, and Lincoln would have to defend the railroad against legal and political opposition. IC was ultimately completed in 1856. At the time, IC was the longest railroad in the world. It would go on to spur the growth of the midwestern economy and allow for rapid travel to and from emerging cities in the U.S. 

IC was sold to CN in 1998. In 2009, CN sold a 200-mile segment of the track connecting Southaven to Canton, Miss., to A&K Materials, creating the short line Grenada Railway. Fast-forward to 2011: Upon hearing news of an abandonment plan, a coalition of community members, economic developers, and local legislators spearheaded by Grenada economic developer Pablo Diaz, former railroad employee Larry Hart and local attorney Walter Brown formed the North Central Mississippi Regional Railroad Authority (NCMRRA). In 2015, the NCMRRA obtained state funding to purchase the Grenada Railway. The NCMRRA chose Iowa Pacific Holdings (IPH) as an operating partner, but IPH did not have the capital needed to adequately invest in track and bridge repairs. 

In mid-2018, RailUSA acquired Grenada Railway from IPH and began operating the line as Grenada Railroad. RailUSA started to unlock value in the line by deploying management and capital. The business goals were clear: Improve the service frequency and reliability by upgrading all 200 miles of track to Class II and 286,000-pound GRL capacity. The first project was reopening an abandoned 81 miles and the CN interchange in Canton. RailUSA committed the matching funds for an FRA FASTLANE grant awarded to GRYR for this project. Work began in late 2018, and the Canton interchange at the south end was reopened in December 2019, allowing traffic to flow across the entire line. 

Agridyne began shipping by rail again, and long-time customer Hankins’ Lumber built a second sawmill on the southern end to expand business in 2021. GRYR was awarded a $6.2 million FRA CRISI grant in 2020 to repair 90 miles of track and 36 bridges on the northern portion of the line from Grenada to Southhaven. RailUSA committed the matching funds for the project. That work is expected to be completed in mid-2022, and for the first time since becoming a short line, the entire railroad will be able to handle 286 GRL traffic. Due to these upgrades, Biewer Lumber is investing $130 million in the construction of a new sawmill in Winona, creating 150 new jobs in rural Mississippi and adding more than 1,000 additional carloads of freight per year to GRYR. Since RailUSA acquired the line in August 2018, freight traffic has doubled, investment has been made by numerous shippers including Hankins and Biewer, and the economy of north-central Mississippi has benefitted from new jobs and economic stimulus due to the rebirth of GRYR. The short line now interchanges more than 11,000 carloads per year and is actively working to bring more customers online. 

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