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Norfolk Southern Corp. and Canadian Pacific subsidiary Delaware & Hudson Railway Co. (D&H) yesterday announced a proposed transaction under which NS would acquire 282.5 miles of a D&H line between Sunbury, Pa., and Schenectady, N.Y., for $217 million. CP would retain ownership of D&H's line from Montreal to Albany, N.Y. The sale is subject to Surface Transportation Board (STB) approval. NS has submitted an application to the STB and the railroads have proposed a schedule that would lead to approval during second-quarter 2015, NS and CP officials said in a press release.The southern portion of D&H's lines connect with NS' network in Sunbury and Binghamton, N.Y., and would provide the Class I single-line routes from Chicago and the southeastern U.S. to Albany and its recently built intermodal terminal in Mechanicville, N.Y., NS officials said. NS also would gain an enhanced connection to its joint venture subsidiary Pan Am Southern, which serves New England markets, and acquire D&H's car shop in Binghamton along with other facilities along the corridor."Acquiring this portion of the D&H provides for more efficient rail transportation system by consolidating freight operations with a single carrier," said NS Chairman and Chief Executive Officer Wick Moorman. "Aligning the D&H track with Norfolk Southern's 22-state network allows us to connect businesses in central Pennsylvania, upstate New York and New England with domestic and international markets, while enhancing the region's competitive rail and surface transportation market."As part of the transaction, NS would retain and modify overhead trackage rights on the line between Schenectady, Crescent and Mechanicville, as well as Saratoga Springs, N.Y. D&H would retain local access to serve customers in Schenectady and maintain its access to shippers in Buffalo, N.Y. NS would retain its current employees and offer employment to about 150 D&H workers in the area."As we have stated in recent months, we've been in the process of negotiating the final details for the potential sale of the southern portion of our D&H line," said CP CEO E. Hunter Harrison. "We are pleased to find a prospective buyer in Norfolk Southern."
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