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Canadian Pacific Railway July 2 granted Norfolk Southern Railway trackage rights between Sunbury, Penn., and Mechanicville, N.Y., to increase freight volumes in upstate New York, northern Pennsylvania and New England.


To accommodate expected traffic increases, CPR, NS and Pennsylvania plan to jointly fund a $2 million passing siding, which CPR would build on
Delaware & Hudson Railway's (D&H) line at Clarks Summit, Penn.


The agreement would expand NS' and CPR's partnership: The railroads in 1998 completed a $12 million upgrade of the Sunbury Line between Sunbury and Scranton, Penn., and in 2001 introduced an intermodal service between the Port of New York/New Jersey, Montreal and Toronto.


"This agreement is part of our mission to build strong strategic partnerships with North American railways that deliver value to customers and shareholders alike," said Fred Green, CPR senior vice president of marketing and sales, in a prepared statement, adding that the deal also will help CPR maximize the value of its northeastern U.S. network by creating
additional traffic on D&H's lines.


"This agreement further improves our competitive routes between New England, and the Midwest and Southeast," said Jim McClellan, NS senior vice president, strategic planning, adding that NS also would obtain a more direct route between central New York and southern destinations.