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Norfolk Southern to acquire 283 miles of CP’s Delaware & Hudson track


NORFOLK, Va.–Norfolk Southern Corp. (NS) has agreed to acquire 283 miles of track from Canadian Pacific Railway (CP) subsidiary, Delaware & Hudson Railway’s (D&H) between Sunbury, Pennsylvania, and Schenectady, New York, for US$217 million.

The new proposal is subject to approval from the US Surface Transportation Board, which the parties aim to receive in the second quarter of 2015, a Canadian Pacific statement said.

“Acquiring this portion of the D&H provides for more efficient rail transportation system by consolidating freight operations with a single carrier,” said NS chief executive Wick Moorman.

“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 the NS at Sunbury and Binghamton, New York, and would give NS single-line routes from Chicago and the southeastern US to Albany, as well as Norfolk Southern’s recently built Mechanicville, New York, intermodal terminal.

NS also would gain an enhanced connection to its joint venture subsidiary Pan Am Southern, which serves the New England markets. Additionally, NS would acquire D&H’s car shop in Binghamton along with other facilities along the corridor.

As part of the transaction, NS would retain and modify overhead trackage rights on the line between Schenectady, Crescent, and Mechanicville, as well as Saratoga Springs, NY.

The D&H would retain local access to serve customers in Schenectady and would maintain its access to shippers in Buffalo.

NS intends to retain its current employees and offer employment to 150 D&H employees currently working in this area, the company said.

“Absent this transaction and its efficiencies, we are concerned that rail service along much of New York’s Southern Tier would be threatened with losing a crucial link to New England,” added NS vice president of strategic planning, John Friedmann.


Julia Kuzeljevich

Julia Kuzeljevich

Julia Kuzeljevich is Editor of Canadian Shipper. She has been writing about transportation and logistics issues since 1999.
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