AP

Norfolk Southern to buy regional railroad for $1.6 billion

Nov 21, 2022, 4:43 PM | Updated: 5:01 pm

OMAHA, Neb. (AP) — Norfolk Southern plans to buy a regional railroad it already operates from Cincinnati for $1.62 billion.

The deal announced Monday will give Norfolk Southern ownership of the busy 337-mile-long (542-kilometer-long) Cincinnati Southern Railroad that connects the Ohio city with Chattanooga, Tennessee. A Norfolk Southern subsidiary now leases the railroad and runs as many as 30 trains a day on it.

“The Cincinnati Southern Railway is a critical artery linking the Midwest and the Southeast and plays an important role in our powerful network,” Norfolk Southern CEO Alan Shaw said.

As part of the deal, the railroad would acquire 9,500 acres (3,800 hectares) of land underneath the tracks and end any uncertainty about how much it would have to pay under future lease agreements. The U.S. Surface Transportation Board will review the deal, which also must be approved by Cincinnati voters.

Norfolk Southern is one of the nation’s largest railroads and reported a nearly $1 billion profit in the third quarter. It operates about 19,500 miles (31,382 kilometers) of track in 22 Eastern states and the District of Columbia. The Atlanta-based railroad said it plans to use both cash on hand and borrow some money to finance the deal.

Cincinnati officials plan to use the proceeds from the sale to set up an infrastructure trust fund that will be invested and generate money to be used for future projects in the city.

Mayor Aftab Pureval said the sale will allow the city to “realize a substantial return on the investment and foresight of our predecessors.”

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

southern Arizona rancher George Alan Kelly...

Associated Press

Trial of a southern Arizona rancher charged in fatal shooting of unarmed migrant goes to the jury

Closing arguments were made against a southern Arizona rancher accused of shooting an undocumented migrant on his land to death on Thursday.

19 hours ago

Donald Trump's hush money trial: 12 jurors selected...

Associated Press

Although 12 jurors were picked for Donald Trump’s hush money trial, selection of alternates is ongoing

A jury of 12 people was seated Thursday in former President Donald Trump's hush money trial. The proceedings are close to opening statements.

21 hours ago

A anti-abortion supporter stands outside the House chamber, Wednesday, April 17, 2024, at the Capit...

Associated Press

Democrats clear path to bring proposed repeal of Arizona’s near-total abortion ban to a vote

Democrats in the Arizona Senate cleared a path to bring a proposed repeal of the state’s near-total ban on abortions to a vote.

2 days ago

Most Americans are sleepy new Gallup poll finds...

Associated Press

Most Americans say they don’t get enough sleep, according to new Gallup poll

A new Gallup poll found that most Americans are sleepy — or, at least, they say they are. Multiple factors play into this.

4 days ago

Near-total abortion ban in Arizona dates back to Civil War era...

Associated Press

Near-total abortion ban dates back to 1864, during the Civil War, before Arizona was a state

The near-total abortion ban resurrected last week by the Arizona Supreme Court dates to 1864, when settlers were encroaching on tribal lands.

4 days ago

Tracy Toulou...

Associated Press

How to tackle crime in Indian Country? Empower tribal justice, ex-Justice Department official says

A recently retired director of the Justice Dept. says the federal government hasn't given tribal justice systems equal recognition.

5 days ago

Sponsored Articles

...

DESERT INSTITUTE FOR SPINE CARE

Desert Institute for Spine Care is the place for weekend warriors to fix their back pain

Spring has sprung and nothing is better than March in Arizona. The temperatures are perfect and with the beautiful weather, Arizona has become a hotbed for hikers, runners, golfers, pickleball players and all types of weekend warriors.

...

Day & Night Air Conditioning, Heating and Plumbing

Day & Night is looking for the oldest AC in the Valley

Does your air conditioner make weird noises or a burning smell when it starts? If so, you may be due for an AC unit replacement.

...

Fiesta Bowl Foundation

The 51st annual Vrbo Fiesta Bowl Parade is excitingly upon us

The 51st annual Vrbo Fiesta Bowl Parade presented by Lerner & Rowe is upon us! The attraction honors Arizona and the history of the game.

Norfolk Southern to buy regional railroad for $1.6 billion