Norfolk Southern said it plans to acquire a stretch of the Delaware & Hudson rail lines from Canadian Pacific for $217 million.
The transaction is for 282.5 miles of the rail line between Sunbury, Pennsylvania, and Schenectady, New York.
The sale is subject to approval by the U.S. Surface and Transportation Board.
“Acquiring this portion of the D&H provides for a more efficient rail transportation system by consolidating freight operations with a single carrier,” Norfolk Southern CEO Wick Moorman said in a statement.
“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,” he added.
The lines would give NS single-line routes from Chicago and the southeastern United States. to Albany, New York, and its recently completed intermodal terminal in Mechanicville, New York.
As part of the deal, NS would acquire D&H’s car shop in Binghamton, New York, and other facilities along the corridor. D&H would retain local access for customers in Schenectady and maintain access to shippers in Buffalo.
