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Sen. Joe Bruno Announces Plans For $40 Million Rail Logistics Center In Saratoga Co., N.Y.

Mechanicville, N.Y. - Jul 08, 2008


Sen. Bruno commits $3 million in New York State funding to bring rail yard operations back to Saratoga County

N.Y. State Senator Joe Bruno (R-Brunswick) today announced that a new intermodal and automotive rail logistics center will be constructed at the former rail yard located within the towns of Halfmoon, Mechanicville, and Stillwater. This new rail terminal will anchor the western end of Pan Am Southern’s Patriot Corridor, which will be a high-speed freight rail route between the Capitol Region and the Boston area once track and signal improvements are complete. Construction of the $40 million facility is expected to begin in the first quarter 2009 and be complete by April 2010.

"As soaring energy costs have forced businesses to re-think how to transport consumer goods, the rail industry has once again become an increasingly viable and affordable option,” Senator Bruno said. “Today’s announcement by Norfolk Southern and Pan Am Railways to invest in constructing a new facility in Southern Saratoga County is great news for the local economies in Mechanicville, Halfmoon and Stillwater."

"Transportation by rail is still the most economically efficient way to move freight, and even more so today with ever rising fuel prices. This is a great announcement for the Capitol Region and for all of New York State,"said Governor David A. Paterson." I want to thank Norfolk Southern and Pan Am Railways for choosing to locate here and I applaud Senator Bruno’s efforts to get them to come. This is exactly the sort of smart investment in our transportation infrastructure that we need to make during these tough economic times, and one that will spur further economic development."

“On behalf of the Pan Am Southern joint venture, I would like to thank Senator Bruno for his leadership and commitment to bring rail yard operations back to Saratoga County,” said Wick Moorman, Norfolk Southern’s chief executive officer. “With the demand for moving freight throughout the U.S. and New York’s Capitol Region at unprecedented levels, this rail facility will serve as the premier distribution point for consumer products and finished automobiles for upstate New York and western New England.”

“Pan Am Railways is pleased to partner with the State of New York, Saratoga County, and the towns of Mechanicville, Halfmoon, and Stillwater on this important regional transportation project,” said David Fink, Pan Am Railways’ president. “This new terminal will add much-needed freight capacity to the Capitol Region, and is critical to the success of our Pan Am Southern joint venture.”

In May, Pan Am Railways and Norfolk Southern announced plans to create a joint venture, called Pan Am Southern. The key component of Pan Am Southern is the Patriot Corridor, the 155-mile main line track that runs between Mechanicville and Ayer, Mass. Pan Am Southern also includes 281 miles of secondary and branch lines, including trackage rights, in Connecticut, Massachusetts, New Hampshire, New York, and Vermont. The new Saratoga County rail logistics center will serve as the primary distribution hub for the Patriot Corridor.

The Pan Am Southern joint venture is subject to the approval of the U.S. Surface Transportation Board, which is expected to issue a decision on the transaction in October 2008.

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.

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.

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.

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Sen. Bruno:
Kris Thompson, 518-455-2381,

Norfolk Southern:
Rudy Husband, 610-567-3377,

Pan Am Railways:
Cynthia Scarano, 978-663-1028, 978-423-2231 (cell),