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Norfolk Southern boosts Pa. rail network with $217M acquisition
Listen to this articleThe rail line is owned by Delaware & Hudson Railway Co., a subsidiary of Canadian Pacific Railway.
“Acquiring this portion of the D&H provides for (a) more efficient rail transportation system by consolidating freight operations with a single carrier,” said Norfolk Southern CEO Wick Moorman. “Aligning the D&H track with Norfolk Southern’s 22-state network allows us to connect businesses in Central Pennsylvania, upstate New York and New England with domestic and international markets while enhancing the region’s competitive rail and surface transportation market.”
It gives the railroad giant single-line routes from Chicago and the southeastern U.S. to Albany, N.Y., and Norfolk Southern’s recently built Mechanicville, N.Y., intermodal terminal.
Norfolk Southern also picks up D&H’s car shop in Binghamton, N.Y., along with other facilities along the corridor. About 150 D&H employees working in this area will be offered employment, according to Norfolk Southern.
The deal is subject to approval by the U.S. Surface Transportation Board. The rail companies are projecting approval by the second quarter of 2015.
Norfolk Southern stock, which trades on the New York Stock Exchange, was trading above $116 per share as of 10:20 a.m. Shares were up about 25 cents for the day.
