Norfolk Southern Corp. announced plans Thursday to invest $140 million to acquire a 50 percent stake in the rail line between Albany, N.Y., and the Boston metropolitan area.
The Norfolk-based railroad would create a joint venture with the line's owner, Pan Am Railways of North Billerica, Mass. The deal to create what would be called Pan Am Southern must be approved by the U.S. Surface Transportation Board.
Norfolk Southern will gain direct access to the Boston area, said Norfolk Southern spokesman Rudy Husband. Previously it had to shift its cargo to Pan Am in Albany for the final stretch to Boston.
Pan Am Railways would contribute its 155-mile main line from Albany to near Boston, plus 281 miles of secondary and branch lines throughout New England.
Norfolk Southern's investment includes property and cash, $87.5 million of which would be invested over three years to improve the route - dubbed the "Patriot Corridor" - by expanding terminals and upgrading tracks and signals to increase capacity.
Pan Am's Springfield Terminal Railway subsidiary will provide all "railroad services" for the joint venture.
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