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Louisville and Indiana Railroad

Published: January 20, 2025

By: Adam Burns

The railroad industry has been the backbone of American industrialization and economic development since the 19th century.

When President Jimmy Carter signed the Staggers Rail Act into law on October 14, 1980, railroads could much more freely abandon or sell lines it deemd unprofitable.

As a result, the modern short line industry sprang up as large Class 1s shed thousands of miles of unwanted trackage throughout the 1980s and 1990s.  This led to the Louisville & Indiana Railroad's creation in 1994 as Conrail let go of the former Pennsylvania Railroad's (PRR) Louisville-Indianapolis main line.

Over the years the L&I has grown and improved this corridor to the point that CSX now utilizes the line to handle its own trains along this route. With a rich history and ongoing relevance, the L&I is a prime example of the enduring importance of rail transport in the United States.

Louisville & Indiana GP38-3's #2002 and #2004 layover at the Jeffersonville Yard on June 5, 2015. Doug Kroll photo.

Historical Background

The Louisville & Indiana traces its roots back to the early 19th century, a time when railroads were beginning to establish themselves as an efficient mode of transportation for both people and goods.

The heritage of its corridor can be traced back to the Jeffersonville, Madison & Indianapolis Railroad, formed on June 1, 1866 through the merger of the Indianapolis & Madison Railroad and Jeffersonville Railroad.

The new JM&I provided a direct route between Indianapolis and Jeffersonville, Indiana, a small town located across the Ohio River from Louisville, Kentucky.

In their book, "Pennsylvania Railroad," authors Brian Solomon and Mike Schafer note the PRR's Pittsburgh, Cincinnati, Chicago & St. Louis Railroad ("The Panhandle Route") subsidiary acquired the JM&I in the early 1870s.  Access into Louisville was achieved via a bridge jointly owned with the Louisville & Nashville.

The Louisville Gateway became an important component of PRR's network, hosting not only freight trains but also notable passenger runs like the South Wind to Miami and Kentuckian to Chicago.

Following Conrail's 1976 creation the large system slowly abandoned sections of the former PRR and New York Central throughout the Midwest.  The Pennsy was especially targeted; throughout the 1980s and 1990s a great deal of the old Panhandle was either abandoned or sold.

This included the 106-mile line between Indianapolis and Louisville, which was spunoff as a new short line, the Louisville & Indiana Railroad, in March, 1994.

Modern Day Operations

As a Class III, the L&I serves a pivotal role in local and regional logistics networks, providing crucial connections to larger Class I railroads and facilitating the movement of a wide variety of goods.

The LIRC interchanges with several major railroads, including CSX Transportation (Indianapolis/Jeffersonville), Indiana Rail Road (Indianapolis), Norfolk Southern (Louisville), MG Rail (Jeffersonville), and Paducah & Louisville (Louisville).

It handles around 20,000 carloads annually with a traffic base consisting of Agriculture/grain, fertilizer, waste material, polymers, chemicals, building materials, lumber, pulp/paper, food grade products, beverages, steel, scrap (metal and paper), and aggregates/minerals.

Economic Significance

The economic impact of the Louisville and Indiana Railroad extends beyond mere transportation services. By providing efficient rail service, the LIRC enables manufacturers, agricultural producers, and other industries in central and southern Indiana and northern Kentucky to move their products to market competitively.

Louisville & Indiana GP38-2 #221 leads the 'Columbus Turn' northbound near Speed, Indiana on the evening of July 22, 2010. Doug Kroll photo.

Infrastructure and Operations

Operating a railroad of this scale demands a robust infrastructure and a commitment to maintenance and upgrades. Over the years, the L&I has invested substantially in its tracks and facilities to improve efficiency and safety.

In collaboration with CSX Transportation, the LIRC launched a multi-million-dollar infrastructure improvement project in 2014, the "Southwind Upgrade". This venture aimed to upgrade tracks, bridges, and crossings, allowing for increased train speeds and heavier loads

By April 2015, the Surface Transportation Board (STB) had given the green light to a plan between CSX and LIRC, paving the way for them to form a Joint Use Operating Agreement by June of that year. This deal granted CSX a non-exclusive easement to operate freight trains over the line, with the Class 1 agreeing to finance the improvement project as a trade-off.

As part of the Southwind improvements, the outdated 1930s-era 130-pound jointed rail was replaced with modern 136-pound continuous welded rail (CWR), alongside installing new ties, adding two new 10,000 ft. sidings, and upgrading a vital bridge.

Finishing up in 2018, these upgrades enabled LIRC to boost its speeds from 25 mph to 49 mph and carry more weight, stepping up from a 263,000 lbs. gross weight limit to an industry standard of 286,000 lbs.

Today, CSX dispatches its own trains over the L&I and Louisville-Indianapolis corridor an important route with the large Class 1's system.

Diesel Roster

Louisville & Indiana GP38-3 #2003 and GP38 #3804 switch local customers at Speed, Indiana on June 4, 2015. Doug Kroll photo.

The Louisville & Indiana represents a microcosm of the broader American rail industry—steeped in history, vital to the economy, and evolving with the times. 

With a dedicated focus on technological advancement, community responsibility, and operational efficiency, the L&I continues to be an invaluable asset to the American Midwest, ensuring that goods reach their markets and industries remain connected.