Norfolk Southern to buy Cincinnati railway for over $1 billion
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Norfolk Southern plans to buy a regional railroad it already operates from Cincinnati for $1.62 billion.
The deal announced Monday will give Norfolk Southern ownership of the busy 337-mile-long Cincinnati Southern Railroad that connects the Ohio city with Chattanooga, Tennessee. A Norfolk Southern subsidiary now leases the railroad and runs as many as 30 trains a day on it.
"The Cincinnati Southern Railway is a critical artery linking the Midwest and the Southeast and plays an important role in our powerful network," Norfolk Southern CEO Alan Shaw said.
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As part of the deal, the railroad would acquire 9,500 acres of land underneath the tracks and end any uncertainty about how much it would have to pay under future lease agreements. The U.S. Surface Transportation Board will review the deal, which also must be approved by Cincinnati voters.