Norfolk Southern Corp. said Aug. 2 that it plans to make upwards of $200 million in rail improvements along its 3B Corridor connecting northern and central Alabama to the Port of Mobile.
The Atlanta-based railway company said that the Alabama project involves constructing 21 mi. of new track as well as a mix of terminal and track-based infrastructure improvements to increase capacity on the 3B Corridor.
Made in Alabama, the online news site for the state's Department of Commerce, noted that the investment effort positions Norfolk Southern to accommodate expected growth in several sectors as the Southeast progresses as an economic powerhouse for the U.S. economy.
The 3B Corridor is strategically aligned with the Port of Mobile, which contributes $85 billion in annual economic value to Alabama, and 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 Alan H. Shaw, Norfolk Southern's president and CEO. "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 Department of Commerce Secretary Ellen McNair noted that the rail company's investments are good news for the state's economic growth prospects.
"We are grateful to Norfolk Southern for these investments in our state and for their support of our existing industries," she 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 operations.
"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," McNair added.
Alabama Recognized As Growth State
Norfolk Southern's development plans include 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, according to Made in Alabama.
Already, Norfolk Southern is collaborating on an effort to allow a high-volume met coal customer to take advantage of the expanded 3B Corridor. The 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 Corp. of America (PCA), recently expanded its paper mill located along the corridor after having partnered 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 Ross Corthell, PCA's vice president of transportation. "The projects Norfolk Southern is planning and doing in the region are great examples of how [its] long-term strategy to invest in infrastructure, operate safely and efficiently, and market [its] service, is designed to promote growth."
With 1,300 mi. of track operated, Norfolk Southern serves 565 customers in Alabama and has more than 1,500 employees.
Moving Freight For Nearly Two Centuries
Since 1827, Norfolk Southern and its predecessor companies have safely moved the goods and materials that drive the U.S. economy. Nearly 200 years later, it operates a customer-centric and operations-driven freight transportation network.
Committed to furthering sustainability, Norfolk Southern also assists its customers in avoiding 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 the corporation originates more automotive traffic than any other Class I Railroad.
Norfolk Southern also boasts of having the most extensive intermodal network in the eastern United States. 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.
Ed Elkins, who serves as Norfolk Southern's executive vice president and chief marketing officer, noted in a news release that his company's emphasis on collaboration and innovation with its customers "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."
Today's top stories
