NS buys Chicago transload site; promotes management efforts in shareholder letter

Norfolk Southern Railway has purchased the Great Lakes Reload (GLR) property, a direct rail and truck-served transload and warehouse facility located in Chicago, the Class I announced today.

The purchase advances NS' strategy to convert flexible freight to rail, company officials said in a press release. By acquiring this space, the railroad and GLR operators aim to provide joint customers with better access to new markets and better connectivity within existing markets, they said.

Transload facilities offer customized solutions tailored to the requirements of different types of cargo. The GLR has the infrastructure and capabilities to safely store and transload steel, cement, lumber and other commodity types, NS officials said.

Financial terms were not disclosed in the press release.

The 60-acre GLR site has an outdoor rail capacity of 175 cars, a climate-controlled 386,000-square-foot warehouse with 13 overhead cranes, 18 indoor rail spots and indoor box car docks. GLR will continue to operate the facility and support operations for NS.

"Transloading solutions play a pivotal role in optimizing rail networks, and this partnership exemplifies our dedication to maximizing efficiency and flexibility for our customers," said Stefan Loeb, vice president of business development and first-and-final-mile markets. ""By acquiring the Great Lakes Reload facility, Norfolk Southern gains access to a unique set of end-to-end supply chain solutions, unlocking significant new business opportunities for existing and future Norfolk Southern customers while preserving the successful operations already in place."

GLR serves Chicago and its surrounding markets.

Meanwhile, Norfolk Southern Corp. has sent a letter to shareholders detailing what company leaders say is the strength of its management team, who are accelerating the NS balanced strategy to narrow the operating ratio gap with peers and deliver sustainable shareholder value.

The letter addresses NS President and CEO Alan Shaw's leadership in "successfully executing" the company's strategy; newly appointed Chief Operating Officer John Orr's acceleration of the company's operating plan; and what NS officials believe are the risks of Ancora Holdings Group LLC's "reckless plan and demands for a wholesale overhaul of management and the board."

Click here to read the letter.