Norfolk Southern's proposed takeover of port rail line requires further review, STB says

The Surface Transportation Board (STB) last week announced it will review Norfolk Southern Railway's proposal to acquire control of Norfolk & Portsmouth Belt Line Railroad Co. (NPBL) as a “significant” transaction.

NPBL is a terminal switching railroad that operates 36 miles of track from Portsmouth to Norfolk, and retains trackage rights over 27 miles of NS track from Chesapeake to Norfolk. The trackage rights facilitate NPBL’s access to the Norfolk International Terminal (NIT), which is one of two primary container terminals at the Port of Virginia in Norfolk.

Although NPBL has been owned by NS (a 57.14% share) and CSX (42.86% share) since 1982, a 2022 STB decision found that the agency did not authorize NS’ control of NPBL in 1982 and had not done so since, STB officials said in a press release.

NS on Feb. 14 filed an application for a minor transaction, but the board now has concerns regarding CSX's access to NIT, and was unable to conclude the transaction wouldn't have an anticompetitive impact. As a result, the STB is treating NS' original application as a “prefiling notification” for a significant transaction and is directing NS to file a supplemental filing for a significant transaction.

The board's decision can be read here.