9 replies to this topic

[CNJRoss]

Times Union, Albany, NY, 10/6:

Deal on rail network close
Canadian Pacific set to sell lines that run south of the Capital Region

The Canadian Pacific Railway is "close to completing a transaction" to sell the former Delaware & Hudson Railway network south of the Capital Region, top officials at CP Rail told analysts last week.

Hunter Harrison, the railroad's CEO, and James Clements, vice president, strategic planning and transportation services, told analysts the company was close to completing a deal during a two-day meeting with analysts in White Plains.

Canadian Pacific would retain the lucrative line that carries Bakken crude from Montreal south to oil terminals at the Port of Albany.

Continue here.

[CNJRoss]

NS & CP joint news release, 11/17:

Norfolk Southern and the Delaware & Hudson propose rail line transaction to support rail service
and the economy in the Northeast

Norfolk, VA., and Calgary, Alberta - Nov 17, 2014

NORFOLK, VA., and CALGARY, ALBERTA – Norfolk Southern Corp. (NS) and the Delaware & Hudson Railway Co. (D&H), a subsidiary of Canadian Pacific Railway (CP) today announced a proposed transaction under which NS would acquire 282.55 miles of D&H rail line between Sunbury, Pa., and Schenectady, N.Y. The $217 million sale, subject to approval by the U.S. Surface Transportation Board, would benefit customers, competition, and jobs in the northeastern United States.

“Acquiring this portion of the D&H provides for more efficient rail transportation system by consolidating freight operations with a single carrier,” said NS CEO Wick Moorman. “Aligning the D&H track with Norfolk Southern’s 22-state network allows us to connect businesses in central Pennsylvania, upstate New York and New England with domestic and international markets while enhancing the region’s competitive rail and surface transportation market.”

The lines to be acquired connect with NS’ network at Sunbury, Pa., and Binghamton, N.Y., and would give NS single-line routes from Chicago and the southeastern United States to Albany, N.Y., and NS’ recently built Mechanicville, N.Y., intermodal terminal. NS also would gain an enhanced connection to its joint venture subsidiary Pan Am Southern, which services New England markets. Additionally, NS would acquire D&H’s car shop in Binghamton along with other facilities along the corridor.

“As we have stated in recent months, we’ve been in the process of negotiating the final details for the potential sale of the southern portion of our D&H line,” said CP CEO E. Hunter Harrison. “We are pleased to find a prospective buyer in Norfolk Southern.”

As part of the transaction, NS would retain and modify overhead trackage rights on the line between Schenectady, Crescent, and Mechanicville, N.Y., as well as Saratoga Springs, N.Y. The D&H would retain local access to serve customers in Schenectady and would maintain its access to shippers in Buffalo.

NS intends to retain its current employees and offer employment to about 150 D&H employees currently working in this area. Any adversely affected employees will be entitled to standard labor protections.

“This acquisition would preserve good-paying railroad jobs and set the stage for economic growth,” said John Friedmann, NS vice president of strategic planning. “Absent this transaction and its efficiencies, we are concerned that rail service along much of New York’s Southern Tier would be threatened with losing a crucial link to New England.”

NS has submitted an application for the transaction to the U.S. Surface Transportation Board. The rail companies are proposing a schedule that would lead to approval during the second quarter of 2015.

Norfolk Southern Corporation (NYSE: NSC) is one of the nation’s premier transportation companies. Its Norfolk Southern Railway Company subsidiary operates approximately 20,000 route miles in 22 states and the District of Columbia, serves every major container port in the eastern United States, and provides efficient connections to other rail carriers. Norfolk Southern operates the most extensive intermodal network in the East and is a major transporter of coal, automotive, and industrial products.

Canadian Pacific (TSX:CP)(NYSE:CP) is a transcontinental railway in Canada and the United States with direct links to eight major ports, including Vancouver and Montreal, providing North American customers a competitive rail service with access to key markets in every corner of the globe. CP is growing with its customers, offering a suite of freight transportation services, logistics solutions and supply chain expertise. Visit cpr.ca to see the rail advantages of Canadian Pacific.

This news release contains certain “forward-looking statements” within the meaning of applicable securities laws relating, but not limited, to NS’ proposed acquisition of a portion of D&H’s rail line, CP’s and NS’ operations, priorities and plans, anticipated financial performance, business prospects, planned capital expenditures, programs and strategies. These forward-looking statements also include, but are not limited to, statements concerning expectations, beliefs, plans, goals, objectives, assumptions and statements about possible future events, conditions, and results of operations or performance. Forward-looking statements may contain statements with words such as “anticipate”, “believe”, “expect”, “plan” or similar words suggesting future outcomes.

Undue reliance should not be placed on forward-looking statements as actual results may differ materially from the forward-looking statements. Forward-looking statements are not a guarantee of future performance. Among other risks, there can be no guarantee that the acquisition will be completed within the anticipated time frame or at all or that the expected benefits of the acquisition will be realized. By their nature, CP’s and NS’ forward-looking statements involve numerous assumptions, inherent risks and uncertainties that could cause actual results to differ materially from the forward-looking statements, including but not limited to the following factors: the occurrence of any event, change or other circumstances that could give rise to the termination of the agreement between CP and NS; the outcome of any legal proceedings that may be instituted against CP or NS and others following announcement of this agreement; the inability to complete the acquisition due to the failure to satisfy the conditions to the acquisition; risks that the proposed transaction disrupts current plans and operations; the ability to recognize the benefits of the acquisition; legislative, regulatory and economic developments, including regulation of rates; changes in business strategies; general North American and global economic, credit and business conditions; risks in agricultural production such as weather conditions and insect populations; the availability and price of energy commodities; the effects of competition and pricing pressures; industry capacity; shifts in market demand; inflation; changes in taxes and tax rates; potential increases in maintenance and operating costs; labor disputes and potential difficulties in employee retention as a result of the acquisition; risks and liabilities arising from derailments; transportation of dangerous goods; timing of completion of capital and maintenance projects; currency and interest rate fluctuations; effects of changes in market conditions; various events that could disrupt operations, including severe weather, droughts, floods, avalanches and earthquakes as well as security threats and governmental responses thereto, and technological changes. The foregoing list of factors is not exhaustive.

These and/or other factors are detailed from time to time in reports filed by CP with securities regulators in Canada and the United States and in reports filed by NS with the SEC. Reference should be made to “Management’s Discussion and Analysis” in CP’s annual and interim reports, Annual Information Form and Form 40-F. Reference should also be made to NS’ Annual Report on Form 10-K for the year ended December 31, 2013. Readers are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements are based on current expectations, estimates and projections and it is possible that predictions, forecasts, projections, and other forms of forward-looking statements will not be achieved by CP or NS or will be delayed or materially altered. Except as required by law, CP and NS undertake no obligation to update publicly or otherwise revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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[KevinKorell]

So as far as I can tell, CP would retain the former D&H trackage north of Schenectady used by the Adirondack and the Ethan Allen Express.

[KevinKorell]

Progressive Railroading, 12/19/14:

 

STB sets procedural schedule for proposed NS/Delaware & Hudson line transaction

 

The Surface Transportation Board (STB) has adopted a procedural schedule for Norfolk Southern Corp.'s petition to acquire control of 282.5 miles of Delaware & Hudson Railway (D&H) track from Canadian Pacific.

More

[CNJRoss]

Press and Sun-Bulletin, Binghamton, NY, 5/13:
 

‘Minimal’ layoffs expected from D&H acquisition

Norfolk Southern pending acquisition of the former D&H rail line will cause “minimal” layoffs

 

Norfolk Southern’s pending $217 million acquisition of the former D&H rail line will cause “minimal” layoffs at rail yards from Binghamton to Plattsburgh, according to railway officials.

 

Canadian Pacific Railway, the D&H parent, filed layoff notices for 165 workers, but railway representatives said many of the employees covered by the notices will be offered similar positions by Norfolk Southern.

 

“We expect minimal impact to total employment,” said Andrew Cummings, media relations manager for CP Rail in Minneapolis, Minnesota.

 

Continue here.

[CNJRoss]

USDOT/STB news release, 5/15:

 

SURFACE TRANSPORTATION BOARD APPROVES NORFOLK SOUTHERN’S ACQUISITION OF DELAWARE & HUDSON’S SOUTH LINES  
 

The Surface Transportation Board today approved Norfolk Southern Railway Company’s (NSR) acquisition of approximately 283 miles of rail line in Pennsylvania and New York from the Delaware & Hudson Railway Company, Inc. (D&H), subject to certain conditions. The lines at issue, known as D&H’s South Lines, consist of approximately 267 miles of the main line between Sunbury/Kase, Pa., and Schenectady, N.Y., and approximately 15 miles of the running track between Voorheesville Junction and Delanson, N.Y.

In reaching its decision, the Board found that NSR’s acquisition of the South Lines from D&H is not likely to cause a substantial lessening of competition or create a monopoly or restraint of trade. The Board found this to be true, even when taking into account D&H’s planned discontinuance of trackage rights that connect to the D&H South Lines, which are the subject of a separate proceeding. The Board concluded that any anticompetitive effects are unlikely and, even if they were to occur, would be far outweighed by the very strong public benefits of the transaction. Such benefits include allowing NSR to provide more reliable, safe, and efficient service for shippers and allowing NSR and rail transportation generally to provide more effective competition with other modes of transportation, such as trucking and barge.

 

The Board issued the approval subject to a number of conditions, including a condition that NSR enter into two voluntary commercial agreements with D&H to preserve certain shippers’ access to two carriers (NSR and D&H).

The Board issued its decision today in Norfolk Southern Railway Company—Acquisition and Operation—Certain Rail Lines of the Delaware and Hudson Railway Company, Inc., FD 35873. That decision may be viewed and downloaded at the STB website, www.stb.dot.gov , under “E-LIBRARY / Decisions & Notices / 05 / 15 / 2015”.

 

# # #

 

[CNJRoss]

NS Intermodal Service Alert:

 

D&H Cutover Outage

Sep 14, 2015

 

As previously announced, the Surface Transportation Board has granted approval for Norfolk Southern to purchase certain portions of the Delaware & Hudson Railroad.  As a result, NS will begin to operate these lines at 12:01am on Saturday, September 19, 2015.  In order to prepare for this, D&H will cease all operations on the impacted lines effective 5:00pm Friday, September 18^th  through 12:00am Saturday, September 19th.  All train operations will experience a complete shutdown during this time until rail operations are systematically brought back online.

 

As a result of the cutover, we expect NS’ intermodal service to and from Albany and Ayer, MA to incur a 24-hour delay:

• Eastbound
  • 22K-18 (Fri) - Chicago/Toledo to Ayer/Taylor
  • 206-18 (Fri) - Chicago/Toledo to Albany
• Westbound
  • 23K-18 (Fri) - Ayer to Chicago
  • 205-19 (Sat) - Albany/Taylor to Chicago

Additionally, traffic between the Port of NY/NJ and Montreal/Toronto will also incur a 18-24 hour delay.

 

 

[CNJRoss]

NS news release, 9/18:

 

Norfolk Southern completes acquisition of Delaware & Hudson South Line - positive news for rail shippers and communities

 

Norfolk, Va. - Sep 18, 2015

 

Norfolk Southern Corporation today completed the acquisition of 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 and supports jobs in Pennsylvania, New York, and New England. 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,” said NS President and CEO James A. Squires. “Our acquisition will make NS a more competitive transportation option between Pennsylvania, New York, and New England.”

 

CP will cease operations on the corridor this evening, and NS is scheduled to start operations at 12:01 a.m. Saturday. The transaction, first proposed in November 2014, received U.S. Surface Transportation Board approval in May 2015.

 

The acquired lines connect with NS’ network at Sunbury, Pa., and Binghamton, N.Y., and they 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.

 

NS has hired about 150 former D&H employees who have experience working in this corridor.

 

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,” said 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.”

[CNJRoss]

CP news release:

 

Canadian Pacific completes sale of the southern portion of its Delaware & Hudson line

 

September 18, 2015

Calgary, AB

 

​​​​Canadian Pacific Railway Limited (TSX:CP)(NYSE:CP) today completed the sale to Norfolk Southern Corp. (NS) of more than 280 miles of track from Schenectady, N.Y., to Sunbury, Pa.

 

The US$214.5 million sale (subject to adjustments) of the Delaware & Hudson South (D&H) was first announced November 14, 2014 and approved by the U.S. Surface Transportation Board on May 15, 2015.

 

"We are pleased to have completed this transaction in partnership with Norfolk Southern," said Keith Creel, CP President and Chief Operating Officer. "The sale allows CP to create value for our shareholders while better aligning the route with the railroad that already moves the majority of traffic over it."

 

The D&H South sale includes all branch lines and industrial spurs that connect to the Sunbury-Schenectady main line, plus some equipment, vehicles and parts. CP will formally cease rail operations on the corridor this evening.​

 

Approximately 45,000 CP carloads and shipping containers move across the line annually, including consumer goods, salt, grain and forest products.

 

In the past, CP has run its Holiday Train over the D&H South but due to the completion of this transaction, will no longer visit communities in this corridor. However, this year CP will make one final donation to the food shelves it has previously supported in the area.​

[CNJRoss]

NS News Release, 9/19/16:

 

Norfolk Southern highlights investment, improved customer service on first anniversary of Delaware & Hudson Line purchase

 

 

NORFOLK, Va., Sept. 19, 2016 ‒ Norfolk Southern Corporation (NYSE: NSC) today marked the first anniversary of its purchase of Delaware & Hudson Railway Co.’s (D&H) line between Sunbury, Pa., and Schenectady, N.Y., by highlighting improved customer service and infrastructure investments NS has made to the corridor.

 

“We set out to improve our competitive transportation offerings between Pennsylvania, New York, and New England, and I’m proud to say Norfolk Southern is well on its way to achieving that goal,” said NS Chairman, President, and CEO James A. Squires. “Norfolk Southern takes great pride in incorporating this corridor into our safe, reliable, and efficient 22-state freight rail network.”

 

On Sept. 18, 2015, NS completed its purchase of 282 miles of D&H track for $214.5 million from Canadian Pacific Railway. Delaware & Hudson is a subsidiary of CP.

 

During the past year, NS has improved safety and service on the line by installing 90,000 new ties, resurfacing 84 miles of track, and making improvements to the Belden Tunnel in New York. Additionally, NS hired 166 new employees, including 140 former D&H employees with experience working the corridor.

 

Improved service on the route, including an average of eight daily trains, has helped attract additional rail traffic, shifting long-haul trucks off public roadways. NS Intermodal terminals at Ayer, Mass., and Scranton, Pa., have seen double-digit volume growth during the past year.

 

The line connects to Norfolk Southern’s network at Sunbury and Binghamton, N.Y., as well as to its joint venture subsidiary Pan Am Southern at Mechanicville, N.Y. Together, the Pan Am Southern network, which services New England markets, and the former D&H line provide NS with a single-line route linking Chicago and southeastern U. S. markets to the Capital Region of New York.

 

Norfolk Southern’s partnership with New York to replace the Portageville Bridge in Letchworth State Park will further improve service to Binghamton, Scranton, Albany, and New England. The new bridge, expected to open in 2017, will replace the span, which operates under weight and speed restrictions.

 

“Our operation of this corridor not only underscores our confidence in the economy of the region, but also preserves good-paying railroad jobs and revitalizes this important rail line,” said John H. Friedmann, NS vice president strategic planning. “We’re making these investments to provide our customers with freight rail service that helps them thrive, and we continuously look to improve safety for our employees, our customers, and the communities in which we operate.”