A viable explosive device detonated on the Barracric Road, the PSNI has confirmed.
The security operation which had been put in place earlier today has ended and the rail line between Newry and Dundalk has reopened.
What is believed to have been the remnants of the device had been taken away for further examination.
There were no reports of any injuries or damage caused.
PSNI Inspector Lorraine Dobson has thanked the public for their cooperation and appealed to anyone with information, or anyone who witnessed suspicious activity in the area in recent days, to get in touch with detectives at Ardmore using the non-emergency number 101, or call Crimestoppers anonymously on 0800 555 111.
Sinn Féin’s Mickey Brady expressed his anger.
“The people carrying out these attacks are doing so against the expressed wishes of the Irish people and to wreck the advances of the peace and political process,” he said.
“It not only was an attack on the political process but also potentially endangered people living in the area.”
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