Historic transaction to strengthen company's
railway operations by securing strategic segment of
network
ATLANTA, Nov. 21,
2022 /PRNewswire/ -- Norfolk Southern Corporation
(NYSE: NSC) announced today the execution of a purchase agreement
under which the company's operating subsidiary, Norfolk Southern
Railway Company, will acquire substantially all of the assets of
the Cincinnati Southern Railway (CSR), an approximately 337 mile
railroad that runs from Cincinnati,
Ohio to Chattanooga,
Tennessee.
The CSR is currently owned by the City
of Cincinnati and operated by the Cincinnati, New
Orleans and Texas Pacific Railway Company (CNOTP), a wholly
owned subsidiary of Norfolk Southern Railway, under a lease
agreement expiring in 2026.
The agreement provides the company ownership of approximately
9,500 acres of land that sits under infrastructure maintained and
operated by Norfolk Southern. Further, it ensures Norfolk
Southern will own the line in perpetuity, while eliminating
uncertainty around future lease costs. The line is one of the
highest density segments of the company's network, with as many as
30 trains a day traveling the route.
"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,"
said 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."
Upon the close of the transaction, projected to occur in the
first half of 2024, the City of
Cincinnati will receive cash consideration of approximately
$1.62 billion. Norfolk Southern
intends to finance the transaction through a combination of
internal and external sources. The City
of Cincinnati plans to use the proceeds of the transaction
to form an infrastructure fund that will benefit the citizens of
Cincinnati for generations to
come. The trust would solely fund the rehabilitation,
modernization, or replacement of existing infrastructure such as
streets, bridges, municipal buildings, parks, and green space. The
closing is subject to certain conditions, including approval by the
voters of Cincinnati and the U.S.
Surface Transportation Board.
About Norfolk Southern
Since 1827, Norfolk Southern Corporation (NYSE: NSC) and its
predecessor companies have safely moved the goods and materials
that drive the U.S. economy. Today, it operates a customer-centric
and operations-driven freight transportation network. Committed to
furthering sustainability, Norfolk Southern helps its customers
avoid 15 million tons of yearly carbon emissions by shipping via
rail. Its dedicated team members deliver more than 7 million
carloads annually, from agriculture to consumer goods, and is the
largest rail shipper of auto products and metals in North America. Norfolk Southern also has the
most extensive intermodal network in the eastern U.S., serving a
majority of the country's population and manufacturing base, with
connections to every major container port on the Atlantic coast as
well as the Gulf of Mexico and
Great Lakes. Learn more by visiting www.NorfolkSouthern.com.
This press release contains forward-looking statements within
the meaning of the safe harbor provision of the Private Securities
Litigation Reform Act of 1995, as amended. These statements relate
to future events or future performance of Norfolk Southern
Corporation ("Norfolk Southern," "NS," the "Company," "we," "our,"
or "us"), including but not limited to statements regarding future
financial performance and anticipated results, benefits, and
targets related to the strategic plan. In some cases, these
forward-looking statements may be identified by the use of words
like "will," "believe," "expect," "targets," "anticipate,"
"estimate," "plan," "consider," "project," "may," "could,"
"should," and similar references to the future. The Company has
based these forward-looking statements on management's current
expectations, assumptions, estimates, beliefs, and projections.
While the Company believes these expectations, assumptions,
estimates, and projections are reasonable, forward-looking
statements are only predictions and involve known and unknown risks
and uncertainties, many of which involve factors or circumstances
that are beyond the Company's control, including but not limited
to: general North American and global economic conditions; changes
in energy prices and fuel markets; uncertainty surrounding timing
and volumes of commodities being shipped; changes in laws and
regulations; uncertainties of claims and lawsuits; labor disputes;
transportation of dangerous goods; effects of changes in capital
market conditions; severe weather; and the impact of the COVID-19
pandemic on us, our customers, our supply chain and our operations.
These and other important factors, including those discussed under
"Risk Factors" in the Annual Report on Form 10-K for the year ended
December 31, 2021, filed with the
Securities and Exchange Commission (the "SEC"), as well as the
Company's subsequent filings with the SEC, may cause actual
results, benefits, performance, or achievements to differ
materially from those expressed or implied by these forward-looking
statements. Please refer to these SEC filings for a full discussion
of those risks and uncertainties we view as most important.
Forward-looking statements are not, and should not be relied
upon as, a guarantee of future events or performance, nor will they
necessarily prove to be accurate indications of the times at or by
which any such events or performance will be achieved. As a result,
actual outcomes and results may differ materially from those
expressed in forward-looking statements. We undertake no obligation
to update or revise forward-looking statements, whether as a result
of new information, the occurrence of certain events or otherwise,
unless otherwise required by applicable securities law.
Media Inquiries:
Media Relations, 404-420-4444
Investor Inquiries:
Luke Nichols, 470-867-4807
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SOURCE Norfolk Southern Corporation