Norfolk Southern purchasing assets of Cincinnati Southern Railway
ATLANTA (WDBJ) - Norfolk Southern has announced a purchase agreement that was carried out with the company’s operating subsidiary, Norfolk Southern Railway Company, that will lead to it acquiring substantially all of the assets of the Cincinnati Southern Railway (CSR).
The stretch of approximately 337 miles of railroad runs from Cincinnati, Ohio to Chattanooga, Tennessee.
The CSR is property of the City of Cincinnati and is operated by the Cincinnati, New Orleans and Texas Pacific Railway Company (CNOTP). CNOTP is a wholly owned subsidiary of Norfolk Southern Railway under a lease agreement that expires in 2026.
The agreement gives the company approximately 9,500 acres of land that sits under infrastructure maintained and operated by Norfolk Southern. It also ensures Norfolk Southern will own the line in perpetuity, while getting rid of any uncertainty surrounding future lease costs.
“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,” according to Norfolk Southern President and Chief Executive Officer Alan H. Shaw. “This agreement sets the framework for Norfolk Southern to own a core line in our network in perpetuity, allowing us to advance our strategic objectives of improving service, enhancing productivity, and creating an even stronger platform for accelerated growth, all while eliminating uncertainty around future control of the line and lease costs.”
The City of Cincinnati will receive cash consideration of around $1.62 billion during the first half of 2024 when the deal is projected to close.
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