Norfolk Southern to make strategic investments in Alabama

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Aug 01, 2024, 13:00 ET

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.

SOURCE Norfolk Southern Corporation