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Pan Am Railways and Norfolk Southern Receive Approval to Improve Rail Service in New York and New England

North Billerica, Mass., Norfolk, Va. - Mar 11, 2009


Pan Am Railways (PAR) and Norfolk Southern Railway Company (NS) have received governmental approvals for their proposed Pan Am Southern joint venture, clearing the way for more than $87 million in rail infrastructure investment designed to significantly enhance the service capabilities and commercial offerings that NS and PAR provide in upstate New York and New England. The U.S. Surface Transportation Board’s approval of the joint venture will become effective as of 12:01 a.m. (EDT), April 9, 2009. Pan Am Southern is expected to commence operation on or about May 1, 2009.

On May 15, 2008, PAR and NS announced an agreement to improve freight rail service and increase track and yard capacity in upstate New York and New England through a newly formed railroad company, Pan Am Southern. The focus of Pan Am Southern is the Patriot Corridor, the 155-mile main line track that runs between Mechanicville (Albany), N.Y., and Ayer, Mass. (approximately 30 miles west of Boston). PAR will transfer to the joint venture this trackage, along with 281 miles of secondary and branch lines, including trackage rights, in Connecticut, Massachusetts, New Hampshire, New York, and Vermont. NS will transfer cash and other property valued at $137.5 million to the joint venture, $87.5 million of which will be invested within a three-year period in capital improvements on the Patriot Corridor. Included in this investment is a new intermodal and automotive terminal in Saratoga County, N.Y., a new automotive terminal in Ayer, expansion of the existing intermodal terminal in Ayer, as well as track and signal upgrades on the Patriot Corridor. These improvements will be implemented as expeditiously as possible, and will comply with certain conditions imposed as part of the Federal regulatory approval process.

“Pan Am Southern will bring immediate benefits to shippers doing business in upstate New York and New England,” said David Fink, Pan Am Railways’ president. “The Patriot Corridor will revitalize freight rail in the region, reducing highway congestion and improving air quality.”

“Both NS and PAR are ready to begin making the infrastructure improvements,” said Wick Moorman, Norfolk Southern’s chief executive officer. “These improvements will enable us to deliver the speed and reliability that our customers expect and deserve. We commend the STB for recognizing the numerous benefits the Pan Am Southern joint venture creates for shippers doing business in New York’s Capital Region and throughout New England.”

A Pan Am Southern map can be found at

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) |

Norfolk Southern Contacts
Media | Rudy Husband | 610-567-3377 |
Investors | Leanne Marilley | 757-629-2861 |