Photo: courtesy of Norfolk Southern.
Norfolk Southern Corporation (NS) has acquired Delaware & Hudson Railway Co.’s (D&H) South Line, 282 miles of rail between Sunbury, Pa., and Schenectady, N.Y., for $214.5 million from Canadian Pacific (CP). D&H is a subsidiary of CP. CP stopped all operations on the line last Friday night, and NS began operations last Saturday.
CP moved approximately 45,000 carloads and shipping containers across the line annually, including consumer goods, salt, grain and forest products.
Included in the acquisition are D&H’s car shop in Binghamton and 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., and also Saratoga Springs, N.Y. NS has hired approximately 150 former D&H employees who have experience working in the South Line Corridor.
NS President and CEO James A. Squires stated, “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. Our acquisition will make NS a more competitive transportation option between Pennsylvania, New York, and New England.”
"We are pleased to have completed this transaction in partnership with Norfolk Southern," said CP President and Chief Operating Officer Keith Creel. "The sale allows CP to create value for our shareholders while better aligning the route with the railroad that already moves the majority of traffic over it."
The South Line allows for connections to the NS network at Sunbury, Pa., and Binghamton, N.Y., and provides NS single-line routes from Chicago and the southeastern United States to Albany, N.Y. The acquisition also offers connections to NS intermodal terminals in Scranton, Pa., and Mechanicville, N.Y., and an enhanced connection to its joint venture subsidiary Pan Am Southern, which serves New England markets.
“This acquisition is a sign of NS’ confidence in the economic potential of northeastern Pennsylvania, New York’s Southern Tier, and New England,” said NS Vice President of Strategic Planning John Friedmann. “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.”
The transaction was proposed in November 2014 and received approval from the U.S. Surface Transportation Board (STB) in May 2015.