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  September 29th, 2015 | Written by

Norfolk Southern Completes Acquisition of Delaware & Hudson South Line

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  • The $214.5 million acquisition of D&H assets by NS increases options for rail shippers.
  • The NS-D&H transaction received U.S. Surface Transportation Board approval in May 2015.
  • The acquired D&H lines provide NS single-line routes from Chicago to Albany and intermodal terminals in PA and NY.

Norfolk Southern Corporation has completed the acquisition of 282 miles of the Delaware & Hudson Railway Co.’s (D&H) line between Sunbury, Pa., and Schenectady, N.Y.

The $214.5 million transaction increases options for rail shippers and supports jobs in Pennsylvania, New York, and New England, according to a Norfolk Southern statement.

The D&H, originally established in 1823, is a subsidiary of the Canadian Pacific Railway (CP).

“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,” said NS President and CEO James A. Squires. “Our acquisition will make NS a more competitive transportation option between Pennsylvania, New York, and New England.”

The transaction, first proposed in November 2014, received U.S. Surface Transportation Board approval in May 2015.

The acquired lines connect with NS’ network at Sunbury, Pa., and Binghamton, N.Y., and they provide 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 also gains an enhanced connection to its joint venture subsidiary Pan Am Southern, which serves New England markets. NS has also acquired D&H’s car shop in Binghamton along with 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., as well as Saratoga Springs, N.Y.

NS has hired about 150 former D&H employees who have experience working in this corridor.

Track crews from NS are scheduled to perform routine maintenance in the corridor, and NS plans in 2016 to add new ties and resurface 40 miles of track and install 14 miles of new curved rail.

“This acquisition is a sign of NS’ confidence in the economic potential of northeastern Pennsylvania, New York’s Southern Tier, and New England,” said 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.”