Cincinnati voters decided on Election Day to allow their city to sell the Cincinnati Southern Railway to Norfolk Southern.
Tuesday’s vote was 51.56% in favor of the sale and 48.44% against the sale, according to Ballotpedia. By votes, those supporting the sale were 43,173 and those against the sale were 40,559 — a difference of 2,614.
The Cincinnati Southern Railway Board of Trustees owns the 382-mile railroad in a trust and leases it to NS (NYSE: NSC) for Cincinnati’s benefit. The city currently receives about $25 million annually from NS, according to a local news report in February.
The city announced in November 2022 that it was considering selling the railway to NS for $1.62 billion to help fund city infrastructure improvements, according to news reports. NS would pay for the transaction through a combination of internal and external sources, the railroad said last year.
Cincinnati has owned the land beneath the track for almost two centuries, but NS operates the rail line, according to NS.
In response to Tuesday’s note, NS spokesperson Tom Crosson said: “This is a victory for the citizens of Cincinnati. Current and future generations will reap the benefits of new infrastructure investments, helping to create a better future for the city. We appreciate all of the community leaders and groups who endorsed Issue 22 — especially Mayor Aftab Pureval, the City Council, and the Board of Trustees of the Cincinnati Southern Railway. We also thank the staff and volunteers who made this a successful campaign. Now, we will work with the city to finalize the sale, which we expect to close in Q1 of 2024.”
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Daniel
4% of 1.62 billion is 65 million. The city is making the right move to sell this off. They would make more investing than the 25 mil lease.
Stephen webster
This is a lot of money but a better solution would been to raise the rent to 70 million a year or run it as a separate Corp than selling it look at the railroad safety records
Andrew jackson
LOL, Seems like OHIO did not learn their lesson. Very bad move here.
dsdsfsd
bad move