Norfolk Southern to Buy Part of Northeast U.S. Rail Line from Canadian Pacific

By Krugel, Lauren | The Canadian Press, November 17, 2014 | Go to article overview

Norfolk Southern to Buy Part of Northeast U.S. Rail Line from Canadian Pacific


Krugel, Lauren, The Canadian Press


Norfolk Southern to buy track from CP

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CALGARY - Canadian Pacific Railway Ltd. (TSX:CP) is selling a stretch of track in the northeastern United States to a major U.S. railway in a US$217-million deal.

Norfolk Southern plans to acquire nearly 455 kilometres of rail line from Delaware & Hudson, a CP subsidiary, between Sunbury, Pa., and Schenectady, N.Y.

The deal is subject to approval by the U.S. Surface Transportation Board.

"Acquiring this portion of the D&H provides for a more efficient rail transportation system by consolidating freight operations with a single carrier," said Wick Moorman, CEO of the Norfolk, Va.,-based railway.

"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 two railways say the deal will benefit competition, customers and employment in the northeastern U.S.

Norfolk Southern said it intends to keep its current employees and hire about 150 of the roughly 200 who currently work with D&H in the region.

"Any adversely affected employees will be entitled to standard labour protections," the companies said in a release. …

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