By Stephen Nakrosis

 

Norfolk Southern Corp. said its subsidiary, Norfolk Southern Railway Co., will acquire substantially all assets of the Cincinnati Southern Railway.

The Cincinnati Southern Railway, which is owned by the City of Cincinnati and operated by the Cincinnati, New Orleans and Texas Pacific Railway Co., consists of about 337 miles of railroad running from Cincinnati to Chattanooga, Tennessee, Norfolk Southern said.

The deal will provides Norfolk Southern with ownership of about 9,500 acres of land that sits under infrastructure it maintains and operates and ensures Norfolk Southern will own the line in perpetuity, the company said.

According to Norfolk Southern, "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."

Once the deal closes, which is expected in the first half of 2024, the City of Cincinnati will receive cash consideration of about $1.62 billion, Norfolk Southern said.

 

Write to Stephen Nakrosis at stephen.nakrosis@wsj.com

 

(END) Dow Jones Newswires

November 21, 2022 16:55 ET (21:55 GMT)

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