May 15, 2008
Pan Am Railways and Norfolk Southern Create the Patriot Corridor to
Improve Rail Service and Expand Capacity in New York and New England
NORTH BILLERICA, MASS., NORFOLK, VA. -- Pan Am Railways (PAR) and
Norfolk Southern Railway Company (NS) have agreed to create an improved rail
route between Albany, N.Y., and the greater Boston, Mass., area called
the "Patriot Corridor." Investments in the Patriot Corridor are
expected to improve track quality and customer service, boost train speed and
reliability, and increase capacity on the route. PAR and NS each will
have a 50 percent interest in the newly formed railroad company, called
"Pan Am Southern."
PAR has agreed to transfer to the joint venture its 155-mile main line
track that runs between Mechanicville (Albany), N.Y., and Ayer, Mass.,
along with 281 miles of secondary and branch lines, including trackage
rights, in Connecticut, Massachusetts, New Hampshire, New York, and
Vermont. NS has agreed to transfer cash and other property valued at $140
million to the joint venture, $87.5 million of which is expected to be
invested within a three-year period in capital improvements on the
Patriot Corridor, such as terminal expansions, track and signal upgrades.
The companies also anticipate the construction of new intermodal and
automotive terminals in the Albany area. PAR's Springfield Terminal
Railway subsidiary has agreed to provide all railroad services for the
joint venture.
"We are excited to partner with Norfolk Southern on the Patriot
Corridor. Since the Conrail transaction was implemented in 1999, both Pan Am
Railways and Norfolk Southern have been working to bring additional high
quality rail transportation options to our New England customer base.
This joint venture is the culmination of those efforts," said David
Fink, Pan Am Railways' president. "With energy prices continuing to
rise, the Patriot Corridor will give our customers additional capacity and
speed to get their products to market."
"Norfolk Southern has been working with Pan Am Railways to improve rail
service and increase transportation options between the Norfolk
Southern system and the Boston area," said Wick Moorman, Norfolk Southern's
chief executive officer. "The Patriot Corridor creates a new level of
rail competition in upstate New York and New England by improving train
speed, reliability, and capacity, as well as strengthening connections
between the region's short line and regional railroads and Norfolk
Southern's 22-state network."
The parties will seek approval for the transaction with the U.S.
Surface Transportation Board. Additional materials describing the transaction
will be posted on Norfolk Southern's Web site, http://www.nscorp.com/, and
will be furnished to the SEC as part of a Current Report on Form 8-K.
Norfolk Southern is currently improving the Heartland Corridor, a
high-capacity rail route linking the Port of Virginia (Norfolk), Columbus,
Ohio, and Chicago, and has announced the Crescent Corridor, an
initiative to divert freight traffic from highways to rail between New Orleans,
Memphis, and the Northeast.
Pan Am Railways is the Northeast's largest regional railroad. It
operates over 2,000 route miles in Maine, New Hampshire, Massachusetts,
Vermont, Connecticut, New York and Atlantic Canada. Pan Am Railways
interchanges traffic with fifteen railroads throughout its network.
Norfolk Southern Corporation (NYSE: NSC) is one of the nation's
premier transportation companies. Its Norfolk Southern Railway subsidiary
operates approximately 21,000 route miles in 22 states and the District
of Columbia, serving every major container port in the eastern United
States and providing superior connections to western rail carriers.
Norfolk Southern operates the most extensive intermodal network in the East
and is North America's largest rail carrier of metals and automotive
products.
Any statements contained in this news release which are not related to
historical facts are forward-looking statements as that term is defined
in the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements are subject to risks and uncertainties (noted in
Norfolk Southern's filings with the SEC) which could cause actual
results to differ.
# # #
Pan Am Railways Contact:
Cynthia Scarano, 978-663-1028, 978-423-2231 (cell),
[email protected]
Norfolk Southern Contacts:
Media: Rudy Husband, 610-567-3377, [email protected]
Investors: Leanne Marilley, 757-629-2861, [email protected]
------------------
Norfolk Southern Corporation
http://www.nscorp.com/
Please do not reply to this email.
To remove yourself from this list, please go to:
http://www.nscorp.com/nscportal/nscorp/lists.html
or send an email to [email protected] and include
in the body only these words: unsubscribe nsinvest
Pan Am Railways and Norfolk Southern Create the Patriot Corridor to
Improve Rail Service and Expand Capacity in New York and New England
NORTH BILLERICA, MASS., NORFOLK, VA. -- Pan Am Railways (PAR) and
Norfolk Southern Railway Company (NS) have agreed to create an improved rail
route between Albany, N.Y., and the greater Boston, Mass., area called
the "Patriot Corridor." Investments in the Patriot Corridor are
expected to improve track quality and customer service, boost train speed and
reliability, and increase capacity on the route. PAR and NS each will
have a 50 percent interest in the newly formed railroad company, called
"Pan Am Southern."
PAR has agreed to transfer to the joint venture its 155-mile main line
track that runs between Mechanicville (Albany), N.Y., and Ayer, Mass.,
along with 281 miles of secondary and branch lines, including trackage
rights, in Connecticut, Massachusetts, New Hampshire, New York, and
Vermont. NS has agreed to transfer cash and other property valued at $140
million to the joint venture, $87.5 million of which is expected to be
invested within a three-year period in capital improvements on the
Patriot Corridor, such as terminal expansions, track and signal upgrades.
The companies also anticipate the construction of new intermodal and
automotive terminals in the Albany area. PAR's Springfield Terminal
Railway subsidiary has agreed to provide all railroad services for the
joint venture.
"We are excited to partner with Norfolk Southern on the Patriot
Corridor. Since the Conrail transaction was implemented in 1999, both Pan Am
Railways and Norfolk Southern have been working to bring additional high
quality rail transportation options to our New England customer base.
This joint venture is the culmination of those efforts," said David
Fink, Pan Am Railways' president. "With energy prices continuing to
rise, the Patriot Corridor will give our customers additional capacity and
speed to get their products to market."
"Norfolk Southern has been working with Pan Am Railways to improve rail
service and increase transportation options between the Norfolk
Southern system and the Boston area," said Wick Moorman, Norfolk Southern's
chief executive officer. "The Patriot Corridor creates a new level of
rail competition in upstate New York and New England by improving train
speed, reliability, and capacity, as well as strengthening connections
between the region's short line and regional railroads and Norfolk
Southern's 22-state network."
The parties will seek approval for the transaction with the U.S.
Surface Transportation Board. Additional materials describing the transaction
will be posted on Norfolk Southern's Web site, http://www.nscorp.com/, and
will be furnished to the SEC as part of a Current Report on Form 8-K.
Norfolk Southern is currently improving the Heartland Corridor, a
high-capacity rail route linking the Port of Virginia (Norfolk), Columbus,
Ohio, and Chicago, and has announced the Crescent Corridor, an
initiative to divert freight traffic from highways to rail between New Orleans,
Memphis, and the Northeast.
Pan Am Railways is the Northeast's largest regional railroad. It
operates over 2,000 route miles in Maine, New Hampshire, Massachusetts,
Vermont, Connecticut, New York and Atlantic Canada. Pan Am Railways
interchanges traffic with fifteen railroads throughout its network.
Norfolk Southern Corporation (NYSE: NSC) is one of the nation's
premier transportation companies. Its Norfolk Southern Railway subsidiary
operates approximately 21,000 route miles in 22 states and the District
of Columbia, serving every major container port in the eastern United
States and providing superior connections to western rail carriers.
Norfolk Southern operates the most extensive intermodal network in the East
and is North America's largest rail carrier of metals and automotive
products.
Any statements contained in this news release which are not related to
historical facts are forward-looking statements as that term is defined
in the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements are subject to risks and uncertainties (noted in
Norfolk Southern's filings with the SEC) which could cause actual
results to differ.
# # #
Pan Am Railways Contact:
Cynthia Scarano, 978-663-1028, 978-423-2231 (cell),
[email protected]
Norfolk Southern Contacts:
Media: Rudy Husband, 610-567-3377, [email protected]
Investors: Leanne Marilley, 757-629-2861, [email protected]
------------------
Norfolk Southern Corporation
http://www.nscorp.com/
Please do not reply to this email.
To remove yourself from this list, please go to:
http://www.nscorp.com/nscportal/nscorp/lists.html
or send an email to [email protected] and include
in the body only these words: unsubscribe nsinvest
