Norfolk Southern invests over $200 million in Alabama rail line expansion
Posted: 5 August 2024 | Global Railway Review | No comments yet
Norfolk Southern Corporation is investing over $200 million to expand Alabama’s 3B Corridor, enhancing capacity and efficiency to support regional economic growth and global supply chain demands.
Credit: Norfolk Southern
Norfolk Southern Corporation (NYSE: NSC) has announced a significant investment exceeding $200 million to expand the capacity of the 3B Corridor, a key rail line in Alabama. This corridor links northern and central Alabama with the Port of Mobile and other global destinations. The upgrade is anticipated to meet growing demand across various sectors and support the Southeast’s emerging role as a major economic hub in the U.S.
The 3B Corridor, integral to Norfolk Southern’s annual traffic, serves multiple industries including agriculture, automotive, chemicals, forestry and steel. The investment is expected to deliver benefits as soon as the improvements become operational in 2025. The project includes infrastructure enhancements such as terminal upgrades, track expansion and grade crossing improvements across central and southwest Alabama.
“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.”
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Alabama Secretary of Commerce Ellen McNair expressed appreciation for the investment, stating: “We are grateful to Norfolk Southern for these investments in our state and for their support of our existing industries. 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.”
The project also includes customer-specific initiatives, such as a new premium metallurgical coal production facility scheduled to start in 2025. This facility aims to support global metal production and infrastructure projects. Additionally, Packaging Corporation of America has expanded its paper mill along the corridor, partnering with Norfolk Southern to enhance rail efficiency.
The enhancements to the 3B Corridor are expected to bolster Alabama’s economic competitiveness and strengthen the broader U.S. supply chain network.
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