NS completes acquisition of Delaware & Hudson line from CP

Norfolk Southern Corp. late last week completed its acquisition of 282 miles of Delaware & Hudson Railway Co.'s (D&H) line between Sunbury, Pa., and Schenectady, N.Y., in a $214.5 million transaction with Canadian Pacific.

D&H is a subsidiary of CP, which ceased operations on the corridor on Sept. 18. NS began its operations on the corridor the following morning.

NS' acquisition will increase options for rail carriers, NS officials said in a press release.

"The D&H South Line integrates perfectly into our 22-state rail system, and it allows NS to connect businesses along this important economic corridor with a rail transportation system that's a top performer in safety and efficiency," said NS President and Chief Executive Officer James Squires. "Our acquisition will make NS a more competitive transportation option between Pennsylvania, New York, and New England."

The acquired miles connect with NS' network at Sunbury, Pa., and Binghamton, N.Y., and provide NS with single-line routes from Chicago and the Southeast United States to Albany, N.Y., as well as NS' intermodal terminals in Scranton, Pa., and Mechanicville, N.Y. Additionally, the transaction gives NS a better connection to its joint venture subsidiary Pan Am Southern, which serves New England.

NS also acquired D&H's car shop in Binghamton and other facilities along the corridor.

As part of the agreement, NS will retain and modify overhead trackage rights on the line between Schenectady, Crescent and Mechanicville, N.Y., as well as Saratoga Springs, N.Y. NS hired about 150 former D&H employees.

NS plans to add new ties, resurface 40 miles of track and install 14 miles of new curved rail along the corridor in 2016.

For CP, the sale allows it to create value for shareholders, as well as better align the route "with the railroad that already moves the majority of traffic over it," said Keith Creel, CP's president and chief operating officer. CP has been transporting about 45,000 carloads and shipping containers across the line annually.