Norfolk Southern finalized the purchase of a 282-mile section of track between Sunbury, Pa. and Schenectady, N.Y., from the Delaware & Hudson Railway Co.
Norfolk Southern Corp. has completed its acquisition a 282-mile section of track between Sunbury, Pa., and Schenectady, N.Y., from the Delaware & Hudson Railway Co., a subsidiary of Canadian Pacific.
According to a statement from the railway, the $214.5 million purchase will “increase options for rail carriers and supports jobs in Pennsylvania, New York, and New England.”
CP and D&H were scheduled to cease operations on the corridor Friday, with NS beginning operations at 12:01 a.m. Saturday morning. The acquisition was first announced in November 2014, and received approval from the U.S. Surface Transportation Board in May.
The newly-purchased section of track connects with NS’ existing rail network at Sunbury, Pa. and Binghamton, N.Y., and provides with 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 said the new line will also enhance connection with its joint venture subsidiary Pan Am Southern, which serves New England markets.
As part of the deal, NS has acquired some of D&H’s facilities along the route, including a railcar repair and maintenance shop in Binghamton. NS will also retain and modify overhead trackage rights on the line between Schenectady, Crescent, and Mechanicville, N.Y., as well as Saratoga Springs, N.Y.
NS plans to add new ties, resurface 40 miles of track, and install 14 miles of new curved rail on the acquired line. The railway has hired about 150 former D&H employees with experience working on the corridor.
“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 Squires said in a statement. “Our acquisition will make NS a more competitive transportation option between Pennsylvania, New York, and New England.”
“This acquisition is a sign of NS’ confidence in the economic potential of northeastern Pennsylvania, New York’s Southern Tier, and New England,” added John Friedmann, NS vice president of strategic planning. “Our commitment to enhancing the D&H South Line will preserve good-paying railroad jobs and generates excitement at NS about future economic growth in the region.”
NS completes Northeast track acquisition
