Norfolk Southern to make $200M investment in Alabama corridor

ATLANTA — Combining infrastructure improvements and answering the needs of customers, Norfolk Southern has launched a massive project for a key rail line connecting north Alabama with the Port of Mobile.

Norfolk Southern serves the International Intermodal Center in Huntsville and has railyards in Decatur and Sheffield.

The railroad said it is investing $200 million to grow capacity on the 3B Corridor, which connects markets in north and central Alabama to the Port of Mobile and destinations worldwide.

The 3B Corridor is strategically aligned with the Port of Mobile, which contributes $85 billion in annual economic value to Alabama, Norfolk Southern said. The corridor represents an important segment of Norfolk Southern’s annual traffic, serving industries such as agriculture, automotive, chemicals, forestry, and steel.

The investments are expected to yield immediate returns when they begin to come online in 2025, the railroad said.

“We are grateful to Norfolk Southern for these investments in our state and for their support of our existing industries,” said Secretary of the Alabama Department of Commerce Ellen McNair. “This is proof that our open for business approach is attracting growth in our state among world-class businesses looking to locate or expand their operation.

“We look forward to the positive impact these enhancements will have on Alabama’s economic competitiveness and on the nation’s supply chain more broadly.”

The project involves a mix of terminal and track-based infrastructure improvements, including capacity projects in central and southwest Alabama, customer-specific projects in north Alabama and locations north of Mobile, yard upgrades in Wilton and a series of grade crossing improvements throughout the region.

“Together with our customers, we are anticipating where markets are heading, and positioning to deliver on their supply chain needs now and into the future,” said Norfolk Southern President and CEO Alan H. Shaw. “These investments will bring immediate returns as they make rail an even more competitive part of our nation’s supply chain and expand our customers end-to-end solutions.”

Packaging Corporation of America, recently expanded its paper mill located along the corridor, partnering with Norfolk Southern on the project to enhance efficiencies for both companies.

“Without Norfolk Southern’s investment in the region, we would not have been able to maximize the opportunity to ship more volume via rail,” said PCA Vice President Transportation Ross Corthell. “The projects Norfolk Southern is planning and doing in the region are great examples of how their long-term strategy to invest in infrastructure, operate safely and efficiently, and market their service, is designed to promote growth.”

Also, Norfolk Southern is collaborating on a project to allow a high-volume met coal customer to take advantage of the expanded 3B Corridor. This new premium met coal production facility, set to be developed in 2025, will help power global production of metals products, especially for essential infrastructure projects, for decades to come.

“Norfolk Southern is focused on delivering long-term value through collaboration and innovation with our customers and their markets,” said Norfolk Southern EVP and Chief Marketing Officer Ed Elkins. “This means being deeply engaged from the beginning, working with customers to identify business needs and help develop solutions, staying engaged throughout the development process, and finally executing on the safe, reliable, efficient transport of their cargo.

“Our comprehensive approach is all about being there for our customers’ needs today and being ready to handle the next phase of their business tomorrow.”