Norfolk Southern has acquired a 282.55-mile section of track between Sunbury, Pa. and Schenectady, N.Y., from the Delaware & Hudson Railway Co.
Norfolk Southern Corp. has acquired a 282.55-mile section of track between Sunbury, Pa., and Schenectady, N.Y., from the Delaware & Hudson Railway Co., expanding its operations in the Northeast.
The $217 million sale is subject to approval by the U.S. Surface Transportation Board. D&H is a subsidiary of Canadian Pacific Railway.
“Acquiring this portion of the D&H provides for more efficient rail transportation system by consolidating freight operations with a single carrier,” said Wick Moorman, Norfolk Southern’s chief executive officer, in a statement. “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 better connections to its joint venture subsidiary Pan Am Southern, which services New England markets. Additionally, the Class I railroad would acquire D&H’s car shop in Binghamton along with other facilities along the corridor.”
As part of the deal, NS would retain and modify overhead trackage rights on the line between Schenectady, Crescent and Mechanicville, N.Y., as well as Saratoga Springs, N.Y. The D&H would retain local access to serve customers in Schenectady and would maintain its access to shippers in Buffalo.
NS plans to offer employment to about 150 D&H employees currently working in this area.
NS expands Northeast presence through track acquisition
