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11/22/2022
Norfolk Southern Railway yesterday announced plans to acquire nearly all assets of Cincinnati Southern Railway.
The Class I has signed a purchase agreement for the CSR, a 337-mile railroad that operates between Cincinnati and Chattanooga, Tennessee. The city of Cincinnati currently owns CSR, which is operated by the New Orleans and Texas Pacific Railway Co. — an NS subsidiary — under a lease agreement that expires in 2026.
The agreement calls for ownership of about 9,500 acres under infrastructure maintained and operated by NS. Further, it ensures that the Class I will own the line in perpetuity while eliminating uncertainty around future lease costs, NS officials said in a press release.
The line is one of the highest-density segments of the NS network, with as many as 30 trains a day traveling the route.
"The Cincinnati Southern Railway is a critical artery linking the Midwest and the Southeast and plays an important role in our powerful network that serves more than half the U.S. population," said NS President and CEO Alan Shaw.
The acquisition is expected to close in the first half of 2024. At that time, Cincinnati will receive cash consideration of $1.62 billion. NS intends to finance the transaction through internal and external sources. The city plans to use the proceeds to form an infrastructure fund.
Closing is subject to approval by Cincinnati voters and the Surface Transportation Board.