CP, NS complete Delaware & Hudson South sale

Written by Jenifer Nunez, assistant editor

Canadian Pacific completed the sale of more than 280 miles of track from Schenectady, N.Y., to Sunbury, Pa., to Norfolk Southern.

 

The $214.5-million sale of the Delaware & Hudson South (D&H) was first announced November 14, 2014, and approved by the U.S. Surface Transportation Board on May 15, 2015.

“We are pleased to have completed this transaction in partnership with Norfolk Southern,” said Keith Creel, CP president and chief operating officer. “The sale allows CP to create value for our shareholders while better aligning the route with the railroad that already moves the majority of traffic over it.”

The D&H South sale includes all branch lines and industrial spurs that connect to the Sunbury-Schenectady mainline, plus some equipment, vehicles and parts.

Approximately 45,000 CP carloads and shipping containers move across the line annually, including consumer goods, salt, grain and forest products.

“The D&H South Line integrates perfectly into our 22-state rail system and it allows NS to connect businesses along this important economic corridor with a rail transportation system that’s a top performer in safety and efficiency,” said NS President and CEO James Squires. “Our acquisition will make NS a more competitive transportation option between Pennsylvania, New York and New England.”

The acquired lines connect with NS’ network at Sunbury, Pa., and Binghamton, N.Y., and they provide NS single-line routes from Chicago and the southeastern United States to Albany, N.Y., and NS’ intermodal terminals in Scranton, Pa., and Mechanicville, N.Y. NS also gains an enhanced connection to its joint venture subsidiary Pan Am Southern, which serves New England markets. Additionally, NS has acquired D&H’s car shop in Binghamton along with other facilities along the corridor.

As part of the transaction, NS will retain and modify overhead trackage rights on the line between Schenectady, Crescent and Mechanicville, N.Y., as well as Saratoga Springs, N.Y. NS has hired about 150 former D&H employees who have experience working in this corridor.

Track crews from NS are scheduled to perform routine maintenance in the corridor and NS plans in 2016 to add new ties and resurface 40 miles of track and install 14 miles of new curved rail.

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