Norfolk Southern Buying Rail Line from Delaware & Hudson

Proposed NS Purchase of D&H South (PRNewsFoto/Norfolk Southern Corporation)
Proposed NS Purchase of D&H South (PRNewsFoto/Norfolk Southern Corporation)

Norfolk Southern Corp. is acquiring from the Delaware & Hudson Railway Co. (D&H), a subsidiary of Canadian Pacific Railway, 282.55 miles of rail line between Sunbury, Pa., and Schenectady, N.Y., in a $217 million sale.

The sale is subject to approval by the U.S. Surface Transportation Board. The railroads contend the sale benefits customers, competition, and jobs in the northeastern United States.

“Acquiring this portion of the D&H provides for more efficient rail transportation system by consolidating freight operations with a single carrier,” NS CEO Wick Moorman said in a news release. “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.”

The lines to be acquired connect with NS’ network at Sunbury, Pa., and Binghamton, N.Y., and would give NS single-line routes from Chicago and the southeastern United States to Albany, N.Y., and NS’ recently built Mechanicville, N.Y., intermodal terminal. NS also would gain an enhanced connection to its joint venture subsidiary Pan Am Southern, which services New England markets.

Additionally, NS would acquire D&H’s car shop in Binghamton along with other facilities along the corridor.