Voters clear path for Norfolk Southern to acquire Cincinnati Southern Railway

Cincinnati voters yesterday approved the proposed sale of the city-owned Cincinnati Southern Railway (CSR), clearing the way for Norfolk Southern Railway to buy it for a reported $1.6 billion.

The 337-mile, 143-year-old CSR operates between Cincinnati and Chattanooga, Tennessee. NS, which has leased the line for generations, announced in November 2022 that it signed an agreement with city officials to buy the railroad. The sale required voter approval before the city could sell it.

In a prepared statement issued today, NS officials thanked Cincinnati Mayor Aftab Pureval, the City Council, the railroad's board and other community leaders for their support of the proposed sale.

"This is a victory for the citizens of Cincinnati. Current and future generations will reap the benefits of new infrastructure investments, helping to create a better future for the city," NS officials said. "Now, we will work with the city to finalize the sale, which we expect to close in the first quarter of 2024."

Selling the railroad has been controversial in Cincinnati. Although Pureval and city officials backed the sale — saying the proceeds could be used toward the cost of repairing city infrastructure — the Railroad Workers United union and some community groups opposed it.

The purchase agreement calls for NS's ownership of about 9,500 acres and ensures the Class I will own the line in perpetuity while eliminating uncertainty around future lease costs, NS officials said when the deal was announced. The line is one of the highest-density segments in NS' network, averaging as many as 30 trains a day.

The Surface Transportation Board in September approved the acquisition, saying it would have have no anticompetitive impact. The railroad has been operated by the New Orleans and Texas Pacific Railway Co., an NS subsidiary.