Norfolk Southern Investing $200M to Boost Alabama Capacity
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Norfolk Southern Corp. is investing $200 million to grow capacity on a key Alabama rail line in a freight corridor for agriculture, automotive, chemicals, forestry and steel goods that links to the Port of Mobile.
“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,” Norfolk Southern CEO Alan Shaw said. “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.”
Alabama Commerce Secretary Ellen McNair said the state will benefit from the venture in the 3B Corridor, which links to Alabama’s only deepwater/saltwater port as well as the northern and central part of the state.
“We are grateful to Norfolk Southern for these investments in our state and for their support of our existing industries,” McNair said. “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.”
Shaw
Norfolk Southern plans to add capacity on the 3B Corridor by investing more than $200 million to position the line to handle projected growth in several sectors. According to the company, the investments are forecast “to yield immediate returns when they begin to come online in 2025.”
Funding will be spent to improve terminal- and track-based infrastructure improvements in the state (including capacity projects in the Central and Southwest, customer-specific enhancements in the North and north of Mobile), yard upgrades and regional grade crossing improvements.
“Norfolk Southern is focused on delivering long-term value through collaboration and innovation with our customers and their markets,” Executive Vice President and Chief Marketing Officer Ed Elkins said. “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.”
The company is currently working with a high-volume coal customer to take advantage of new transportation options that will arise with an expanded 3B Corridor.
“This new premium 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,” Norfolk Southern stated. “Another customer, Packaging Corp. of America, recently expanded its paper mill located along the corridor, partnering with Norfolk Southern on the project to enhance efficiencies for both companies.” Illinois-based PCA is a top North American producer of containerboard and corrugated packaging.
Elkins said the company is concentrating on delivering long-term value by collaborating with customers in their markets.
Currently Norfolk Southern operates 1,300 miles of track in Alabama and serves 565 customers there.
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