Norfolk Southern Finalizes Acquisition of Delaware & Hudson South Line

Norfolk Southern on Sept. 18 said it had  completed the acquisition of 282 miles of the Delaware & Hudson Railway Co.’s (D&H) line between Sunbury, Pa., and Schenectady, N.Y.

The $214.5 million transaction increases options for rail carriers and supports jobs in Pennsylvania, New York, and New England, Norfolk Southern contends. D&H is a subsidiary of Canadian Pacific (CP).

“The D&H South Line integrates perfectly into our 22-state rail system, and it allows NS to connect businesses along this important economic corridor with a rail transportation system that’s a top performer in safety and efficiency,” NS President and CEO James A. Squires said in a news release. “Our acquisition will make NS a more competitive transportation option between Pennsylvania, New York, and New England.”

CP will cease operations on the corridor on evening of Sept. 18, and NS was scheduled to start operations at 12:01 a.m. on Sept. 19. The transaction, first proposed in November 2014, received U.S. Surface Transportation Board approval in May 2015.

The acquired lines connect with NS’ network at Sunbury, Pa., and Binghamton, N.Y., and they provide NS single-line routes from Chicago and the southeastern United States to Albany, N.Y., and NS’ intermodal terminals in Scranton, Pa., and Mechanicville, N.Y. NS also gains an enhanced connection to its joint venture subsidiary Pan Am Southern, which serves New England markets. Additionally, NS has acquired D&H’s car shop in Binghamton along with other facilities along the corridor.

As part of the transaction, NS will retain and modify overhead trackage rights on the line between Schenectady, Crescent, and Mechanicville, N.Y., as well as Saratoga Springs, N.Y.

NS has hired about 150 former D&H employees who have experience working in this corridor.

Track crews from NS are scheduled to perform routine maintenance in the corridor, and NS plans in 2016 to add new ties and resurface 40 miles of track and install 14 miles of new curved rail.