Significant capacity improvements will enhance
critical rail corridor, open additional opportunities
for statewide business and economic growth
ATLANTA, Aug. 1, 2024
/PRNewswire/ -- Norfolk Southern Corporation (NYSE: NSC) is
investing to grow capacity on a key rail line in the state of
Alabama, the 3B Corridor, which connects markets in northern
and central Alabama to the Port of
Mobile and destinations worldwide.
The more-than $200 million investment
positions the line to accommodate expected growth in several
sectors as the Southeast progresses as an economic powerhouse for
the US economy.
The 3B Corridor is strategically
aligned with the Port of Mobile,
which contributes $85 billion in
annual economic value to Alabama.
The corridor represents an important segment of Norfolk Southern's
annual traffic, serving critical industries like agriculture,
automotive, chemicals, forestry, and steel. The investments are
expected to yield immediate returns when they begin to come online
in 2025.
"Together with our customers, we are anticipating where markets
are heading, and positioning to deliver on their supply chain needs
now and into the future," said Norfolk Southern President and CEO
Alan H. Shaw. "These investments
will bring immediate returns as they make rail an even more
competitive part of our nation's supply chain and expand our
customers end-to-end solutions."
"We are grateful to Norfolk Southern for these investments in
our state and for their support of our existing industries," said
Secretary of the Alabama Department of Commerce Ellen
McNair. "This is proof that our open for business approach is
attracting growth in our state among world-class businesses looking
to locate or expand their operation. We look forward to the
positive impact these enhancements will have on Alabama's economic competitiveness and on the
nation's supply chain more broadly."
The project involves a mix of terminal and track-based
infrastructure improvements, including capacity projects in central
and southwest Alabama,
customer-specific projects in north Alabama and locations north of Mobile, yard upgrades in Wilton and a series of grade crossing
improvements throughout the region.
Already, Norfolk Southern is collaborating on a project to allow
a high-volume met coal customer to take advantage of the expanded
3B Corridor. This new premium met
coal production facility, set to be developed in 2025, will help
power global production of metals products, especially for
essential infrastructure projects, for decades to come.
Another customer, Packaging Corporation of America, recently
expanded its paper mill located along the corridor, partnering with
Norfolk Southern on the project to enhance efficiencies for both
companies.
"Without Norfolk Southern's investment in the region, we would
not have been able to maximize the opportunity to ship more volume
via rail," said PCA Vice President, Transportation Ross Corthell.
"The projects Norfolk Southern is planning and doing in the region
are great examples of how their long-term strategy to invest in
infrastructure, operate safely and efficiently, and market their
service, is designed to promote growth."
"Norfolk Southern is focused on delivering long-term value
through collaboration and innovation with our customers and their
markets," said Norfolk Southern EVP and Chief Marketing Officer
Ed Elkins. "This means being deeply
engaged from the beginning, working with customers to identify
business needs and help develop solutions, staying engaged
throughout the development process, and finally executing on the
safe, reliable, efficient transport of their cargo. Our
comprehensive approach is all about being there for our customers'
needs today and being ready to handle the next phase of their
business tomorrow."
An overview of Norfolk Southern's business and impact on the
state of Alabama can also be found
here.
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 approximately 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 Norfolk Southern originates more
automotive traffic than any other Class I Railroad. Norfolk
Southern also has the most extensive intermodal network in the
eastern U.S. It serves a majority of the country's population and
manufacturing base, with connections to every major container port
on the Atlantic coast as well as major ports in the Gulf of Mexico and Great Lakes. Learn more by
visiting www.NorfolkSouthern.com.
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SOURCE Norfolk Southern Corporation