Norfolk Southern Corp. (NS), Norfolk, Va., acquired 282 miles of the Delaware & Hudson Railway Co.’s (D&H) line between Sunbury, Pa., and Schenectady, N.Y., a $214.5 million transaction that increases options for rail carriers. D&H is a subsidiary of Canadian Pacific (CP).

“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,” says James Squires, NS president and CEO. “Our acquisition will make NS a more competitive transportation option between Pennsylvania, New York and New England.”

The acquired lines 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.

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.

“This acquisition is a sign of NS’ confidence in the economic potential of northeastern Pennsylvania, New York’s Southern Tier and New England,” says John Friedmann, NS vice president of strategic planning. “Our commitment to enhancing the D&H South line will preserve good-paying railroad jobs and generates excitement at NS about future economic growth in the region.”