This new rail terminal will anchor the western end of Pan Am Southern’s Patriot Corridor, which will be a high-speed freight rail route between the Capitol Region and the Boston area once track and signal improvements are complete. Construction of the $40 million facility is expected to begin in the first quarter 2009 and be complete by April 2010.

“As soaring energy costs have forced businesses to re-think how to transport consumer goods, the rail industry has once again become an increasingly viable and affordable option,” Senator Bruno said. “Today’s announcement by Norfolk Southern and Pan Am Railways to invest in constructing a new facility in Southern Saratoga County is great news for the local economies in Mechanicville, Halfmoon and Stillwater.”

“Transportation by rail is still the most economically efficient way to move freight, and even more so today with ever rising fuel prices. This is a great announcement for the Capitol Region and for all of New York State,” said Governor David A. Paterson. “I want to thank Norfolk Southern and Pan Am Railways for choosing to locate here and I applaud Senator Bruno’s efforts to get them to come. This is exactly the sort of smart investment in our transportation infrastructure that we need to make during these tough economic times, and one that will spur further economic development.”

“On behalf of the Pan Am Southern joint venture, I would like to thank Senator Bruno for his leadership and commitment to bring rail yard operations back to Saratoga County,” said Wick Moorman, Norfolk Southern’s chief executive officer. “With the demand for moving freight throughout the U.S. and New York’s Capitol Region at unprecedented levels, this rail facility will serve as the premier distribution point for consumer products and finished automobiles for upstate New York and western New England.”

“Pan Am Railways is pleased to partner with the State of New York, Saratoga County, and the towns of Mechanicville, Halfmoon, and Stillwater on this important regional transportation project,” said David Fink, Pan Am Railways’ president. “This new terminal will add much-needed freight capacity to the Capitol Region, and is critical to the success of our Pan Am Southern joint venture.”

In May, Pan Am Railways and Norfolk Southern announced plans to create a joint venture, called Pan Am Southern. The key component of Pan Am Southern is the Patriot Corridor, the 155-mile main line track that runs between Mechanicville and Ayer, Mass. Pan Am Southern also includes 281 miles of secondary and branch lines, including trackage rights, in Connecticut, Massachusetts, New Hampshire, New York, and Vermont. The new Saratoga County rail logistics center will serve as the primary distribution hub for the Patriot Corridor.

The Pan Am Southern joint venture is subject to the approval of the U.S. Surface Transportation Board, which is expected to issue a decision on the transaction in October 2008.

– PRNewswire-FirstCall

– PRNewswire-FirstCall

Headquartered in Washington, Voyack will be responsible for lobbying Congress, coordinating government relations programs and policies and implementing legislative strategies. He will report to Marque I. Ledoux, assistant vice president government relations — federal.

Voyack started his work on Capitol Hill in the office of Congressman Norman Sisisky of Virginia before moving to the International Association of Bridge, Structural and Ornamental Iron Workers, where he spent 18 years in various legislative positions. He is a graduate of Virginia Commonwealth University and Georgetown University.

“Frank’s breadth of experience and knowledge of the legislative process will be of tremendous value to NS and its constituencies,” Ledoux said.

Voyack joined Norfolk Southern after five years with the Airline Pilots Association, most recently as senior legislative/political representative in Washington.

– Railfanning.org News Wire based on PRNewswire-FirstCall

The “Empire Link” allows the short line railroads to market the excess rail freight capacity on NS’ Southern Tier main line between Binghamton and Silver Springs, N.Y., as well as on branch lines between Corning and Geneva, and between Waverly and Ludlowville.

“With the high price of diesel fuel, the Empire Link is an attractive option for shippers currently trucking freight in New York, Pennsylvania, and New Jersey,” said David Lawson, Norfolk Southern’s vice president industrial products. “The Empire Link provides our New York short line partners with the tools and resources to design and offer rail transportation services that are truck-competitive in lanes that are less than 500 miles.”

The 10 short lines participating in the Empire Link are the Bath and Hammondsport Railroad; Central New York Railroad Corp.; Finger Lakes Railway; Livonia, Avon and Lakeville Railroad; the New York, Susquehanna & Western Railway Corp.; Ontario Central Railroad; Owego & Harford Railway; Rochester and Southern Railroad; Wellsboro and Corning Railroad; and Western New York & Pennsylvania Railroad.

“The recent collaboration of the American Short Line and Regional Railroad Association’s Eastern Region Short line members and Norfolk Southern is one of the most creative business initiatives to come about in the last 15 years,” said Rich Timmons, ASLRRA president. “We expect positive results for shippers, communities, and big and small railroads alike. If the Empire Link performs as we anticipate, it could serve as a model for future Class I and short line business arrangements.”

– PRNewswire-FirstCall

Since deregulation of the freight railroad industry in 1980, Class 1 freight ton-miles have increased 93 percent, while miles of track have decreased 40 percent, U.S. Rep. Corrine Brown, D-Fla., said. The U.S. Department of Transportation estimates that the demand for rail freight transportation will increase 88 percent by 2035, and their studies estimate that an investment of $148 billion in infrastructure expansion will be needed over the ext 28 years to keep pace with economic growth and to meet DOT’s expecteddemand, the Congresswoman added.

“Unfortunately, as freight movements have grown, so have the conflicts between freight and passenger trains, even though under existing federal law, Amtrak trains have priority over freight trains,” Brown said during a hearing last month. “This demand for space in the rail system has also caused unintended consequences for shippers.”

Freight traffic on U.S. railroads in 2007 was the second highest on record, according to the Association of American Railroads (AAR), following only 2006.

“Additionally, there is growing demand on the rail network for more than just freight movements,” U.S. Rep. James L. Oberstar, D-Minn., said during last month’s hearing. “In 2007, Amtrak moved 25.8 million passengers, the fifth straight year of record ridership. Additionally, commuter rail providers recorded 460 million trips in 2007.

“Congestion, heightened concerns over global warming, and rising gas prices will continue to push the demand for these alternatives to highway travel, and Amtrak and commuter rail must be able to continue to expand to accommodate their growing ridership,” Oberstar added. “Amtrak and commuter rail utilize portions of the freight rail network to provide service. However, their capacity needs are different from those of the freight railroads, meaning different capacity investments will be necessary if we want to continue to favor these modes.”

To help ease the congestion, some members of Congress are looking whether federal legislation needs to be passed, according to Oberstar.

“Unlike other modes of transportation, there is no dedicated stream of funding for rehabilitating, reconstructing, or expanding our nation’s rail network,” Oberstar said. “Some legislative proposals to deal with capacity concerns are circulating in Congress, including one to provide the railroads with a 25 percent infrastructure tax credit. I am currently reviewing that legislation.”

– Railfanning.org News Wire

The awards, given annually for 12 years, are presented to companies that ship more than 1,000 carloads of hazardous chemicals without incident.

“These valued customers have set the example for safe handling of chemicals transported by rail,” said Norfolk Southern Chief Executive Officer Wick Moorman. “Their record of zero incidents demonstrates their commitment to safety in the workplace and in the community. Norfolk Southern is pleased to recognize their accomplishments.”

Customers earning the award for 2007 are:
– Airgas Carbonic Inc.
– Akzo Nobel Chemicals Inc.
– American Ecology Corporation
– The Andersons, Inc.
– ArcelorMittal USA
– Archer Daniels Midland Company plant at Peoria, Ill.
– Aventine Renewable Energy, Inc.
– BP
– Chemtrade Logistics Inc.
– The Dow Chemical Company
– E.I. DuPont de Nemours and Company plant at Belle, W.Va.
– Georgia Gulf Corporation
– Global Ethanol, LLC
– Hawkeye Renewables, LLC
– Horsehead Corporation
– Huntsman Corporation
– Ineos Oligomers
– International Commodities Export Corporation
– INVISTA S.a.r.l.
– Kemira Water Solutions, Inc.
– Koch Mineral Services
– Koppers Inc.
– Linde, Inc.
– Lucite International Inc.
– Marathon Petroleum Company LLC
– NOVA Chemicals (Canada Ltd.)
– Nucor Corp.
– NuStar Marketing LLC
– Olin Corporation Chlor Alkali Division plants at Augusta, Ga., and Charleston, Tenn.
– PCS Phosphate plant at Savannah, Ga.
– PPG Industries, Inc.
– The Procter & Gamble Manufacturing Co.
– Rhodia, Inc.
– Rohm and Haas Company
– Sunbelt Chlor Alkali Partnership
– Suncor Energy Inc.
– Sunoco Chemicals Inc. plants at Frankford, Pa., Haverhill, Ohio, and Westville, N.J.
– Terra Industries Inc.
– Valero Marketing & Supply Company
– WRB Refining LLC

– PRNewswire-FirstCall

Prototypes of the Uni-Level railcar have been tested successfully in the marketplace over the past three years.
Norfolk Southern’s Automotive Group and Modalgistics Supply Chain Services will provide dock-to-dock shipment management to Uni-Level users through their Load Planning, Web-Based VIN Visibility, Optimized Mode Selection, and Strategic Network Design services.
The initial Uni-Level service network will be concentrated on local NS service lanes, with later expansion into Mexico, Canada, and the West Coast.

– PRNewswire-FirstCall

Investments in the Patriot Corridor are expected to improve track quality and customer service, boost train speed and reliability, and increase capacity on the route. PAR and NS each will have a 50 percent interest in the newly formed railroad company, called “Pan Am Southern.”

PAR has agreed to transfer to the joint venture its 155-mile main line track that runs between Mechanicville (Albany), N.Y., and Ayer, Mass., along with 281 miles of secondary and branch lines, including trackage rights, in Connecticut, Massachusetts, New Hampshire, New York, and Vermont.

NS has agreed to transfer cash and other property valued at $140 million to the joint venture, $87.5 million of which is expected to be invested within a three-year period in capital improvements on the Patriot Corridor, such as terminal expansions, track and signal upgrades. The companies also anticipate the construction of new intermodal and automotive terminals in the Albany area. PAR’s Springfield Terminal Railway subsidiary has agreed to provide all railroad services for the joint venture.

“We are excited to partner with Norfolk Southern on the Patriot Corridor. Since the Conrail transaction was implemented in 1999, both Pan Am Railways and Norfolk Southern have been working to bring additional high quality rail transportation options to our New England customer base. This joint venture is the culmination of those efforts,” said David Fink, Pan Am Railways’ president. “With energy prices continuing to rise, the Patriot Corridor will give our customers additional capacity and speed to get their products to market.”

“Norfolk Southern has been working with Pan Am Railways to improve rail service and increase transportation options between the Norfolk Southern system and the Boston area,” said Wick Moorman, Norfolk Southern’s chief executive officer. “The Patriot Corridor creates a new level of rail competition in upstate New York and New England by improving train speed, reliability, and capacity, as well as strengthening connections between the region’s short line and regional railroads and Norfolk Southern’s 22-state network.”

The parties will seek approval for the transaction with the Surface Transportation Board.

Norfolk Southern is currently improving the Heartland Corridor, a high-capacity rail route linking the Port of Virginia in Norfolk, Columbus, Ohio, and Chicago, and has announced the Crescent Corridor, an initiative to divert freight traffic from highways to rail between New Orleans, Memphis, and the Northeast.

Pan Am Railways is the Northeast’s largest regional railroad. It operates over 2,000 route miles in Maine, New Hampshire, Massachusetts, Vermont, Connecticut, New York and Atlantic Canada. Pan Am Railways interchanges traffic with fifteen railroads throughout its network.

– PRNewswire-FirstCall

Contributing to the accident was the Federal Railroad Administration’s inadequate oversight of the internal rail inspection process and its insufficient requirements for internal rail inspection.

On Oct. 20, 2006, a Norfolk Southern freight train (68QB119), en route from the Chicago area to Sewaren, N.J., derailed while crossing the Beaver River railroad bridge in New Brighton, P.a. The train consisted of a three-unit locomotive pulling three empty freight cars and 83 tank cars loaded with 660,952 gallons of denatured ethanol.

Twenty-three of the tank cars derailed, and several of the cars fell into the Beaver River. Approximately 20 of the cars released ethanol, a flammable liquid that ignited and burned for 48 hours. A seven-block area of New Brighton was evacuated. There were no injuries or fatalities.

“Because Norfolk Southern did not have an adequate rail inspection and maintenance program, they put the public, crew, and environment at risk,” said NTSB Chairman Mark V. Rosenker.

The track where the derailment occurred was installed in 1977 and had experienced significant rail head wear prior to the accident. Norfolk Southern had hired a contractor to inspect the track for internal rail defects.

In 2006, three ultrasonic/induction inspections for internal rail defects were conducted on the accident track. The last inspection on Aug. 1, showed an intermittent loss of bottom signal over a 9-foot length of rail in the area where the derailment subsequently occurred.

FRA regulations require that all railroads conduct a continuous search when inspecting rail for internal defects. Additionally, according to the FRA, any rail inspection that is interrupted, as a result of rail surface conditions that inhibit the transmission or return of the signal, is not considered to be continuous and therefore is not considered a valid inspection of the affected rail segment.

However, about a year and a half before the accident and without consulting the FRA, Norfolk Southern gave new procedures to the inspection contractor for inspecting rail
for internal defects.

The procedures permitted inspection equipment operators to ignore any loss of bottom signal, as long as the continuous loss of signal distance did not exceed 5 feet of linear rail. The Safety Board investigation found that the initiating defect that caused the rail fracture was located in the length of rail that had the loss of bottom signal during the Aug. 1 inspection.
The equipment operator did not stop the inspection vehicle for a re-inspection or to hand inspect the rail, consistent with the procedures provided by Norfolk Southern.

“Norfolk Southern was not conducting a continuous search of their rail for internal defects, which left segments of rail uninspected and in service indefinitely,” Rosenker said.
“This accident illustrates the importance of having a comprehensive rail inspection and maintenance program that will account for factors such as rail head wear and loss of signal during internal testing.”

As a result of this accident, the Safety Board made the following recommendations:

To the Federal Railroad Administration:

Review all railroads’ internal rail defect detection procedures and require changes to those
procedures as necessary to eliminate exceptions to the requirement for an uninterrupted, continuous search for rail defects.

Require railroads to develop rail inspection and maintenance programs based on damage-tolerance principles and approve those programs. Include in the requirement that railroads demonstrate how their programs will identify and remove internal defects before they reach critical size and result in catastrophic rail failures. Each program should take into account, at a minimum, accumulated tonnage, track geometry, rail surface conditions,
rail head wear, rail steel specifications, track support, residual stresses in the rail, rail defect growth rates, and temperature differentials.

Require that railroads use methods that accurately measure rail head wear to ensure the deformation of the head does not affect the accuracy of the measurements.

Assist the Pipeline and Hazardous Material Safety Administration in its evaluation of the risk posed to train crews by unit trains transporting hazardous material, determination of the optimum separation requirements between occupied locomotives and hazardous material cars, and any resulting revision of 49 Code of Federal Regulations 174.85.

To the Pipeline and Hazardous Materials Safety Administration:

With the assistance of the Federal Railroad Administration, evaluate the risk posed to train
crews by unit trains transporting hazardous materials, determine the optimum separation requirements between occupied locomotives and hazardous material cars, and revise 49 Code of Federal Regulations 174.85 accordingly.

To Norfolk Southern:

Revise your ultrasonic rail inspection procedures to eliminate exceptions to the requirement for uninterrupted, continuous search for rail defects.

“Our results speak volumes for something that we talk about all the time - the strength of our balanced portfolio of business,” Moorman said. “We’re really seeing two different economies out there in that a large component of our business is very healthy. Our agricultural business and anything having to do with commodities are very strong, along with coal, steel, metals, and some other business. At the same time, we are seeing the ongoing effects of slowdowns in housing-related and automotive-related transportation business.”

Moorman said that factors supporting long-term growth in rail freight demand, including higher fuel prices, increased highway congestion, and truck driver shortages, “all remain in place, and we’re confident that volume growth will resume as the economy rebounds. We continue planning for a future that we have every reason to believe is bright for our company and our industry.”

In official business, stockholders re-elected four directors: Gerald L. Baliles, director of the Miller Center of Public Affairs at the University of Virginia; Gene R. Carter, executive director and chief executive officer of the Association for Supervision and Curriculum Development; Karen N. Horn, a partner with Brock Capital Group, former president of the Federal Reserve Bank of Cleveland, and former chair and chief executive officer of Bank One, Cleveland, N.A.; and retired Navy Adm. J. Paul Reason, a member of the Naval Studies Board of the National Academy of Sciences, and former commander in chief of the U.S. Atlantic Fleet. Stockholders also ratified the appointment of KPMG LLP as auditors.

– PRNewswire-FirstCall