US: Norfolk Southern to Purchase Cincinnati Southern Railway

Norfolk Southern Railway Company (NSRC) has announced an agreement to purchase all of Cincinnati Southern Railway’s (CSR) assets from its current owner, the City of Cincinnati, for 1.62 billion USD (1.57bn EUR).

With as many as 30 trains a day travelling the route, this is a critical artery linking the US’s Midwest and Southeast.

A Norfolk Southern intermodal train crossing the Tennessee River into Chattanooga, Tennessee.A Norfolk Southern intermodal train crossing the Tennessee River into Chattanooga, Tennessee.

© Norfolk Southern / Ryan Markham

Under the current lease, which expires in 2026, the CSR is operated by the Cincinnati, New Orleans and Texas Pacific Railway Company (CNOTP), a subsidiary of Norfolk Southern Railway.

With this new agreement, NSRC will gain roughly 9,500 acres of land that sits under infrastructure maintained and operated by parent company, Norfolk Southern.

The corporation will also take ownership of the line in perpetuity, removing uncertainty around future lease costs.

Alan H. Shaw, Norfolk Southern President and Chief Executive Officer, said:

“This agreement sets the framework for Norfolk Southern to own a core line in our network in perpetuity, allowing us to advance our strategic objectives of improving service, enhancing productivity, and creating an even stronger platform for accelerated growth, all while eliminating uncertainty around future control of the line and lease costs.”

The purchase is expected to be completed in the first half of 2024.

source= https://railway-news.com/us-norfolk-southern-to-purchase-cincinnati-southern-railway/

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