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Norfolk Southern announces plan to acquire Delaware & Hudson line

18 Nov 2014

USA: On November 17 Norfolk Southern Corp announced plans to acquire 455 km of track between Sunbury, Pennsylvania, and Schenectady, New York, from the Delaware & Hudson Railway Co subsidiary of Canadian Pacific Railway. The US$217m purchase is subject to approval by the Surface Transportation Board, which the railways hope to obtain in the second quarter of 2015.

The route connects with the NS network at Sunbury and Binghamton, and would give NS single-line routes from Chicago and the southeastern USA to Albany and its Mechanicville, New York, intermodal terminal, as well as an improved connection to its Pan Am Southern joint venture. NS would acquire D&H's Binghamton workshop along with other facilities. D&H will continue to serve local customers in Schenectady and Buffalo.

NS intends to take on about 150 D&H employees, with adversely affected staff entitled to standard labour protections.

‘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.’