Norfolk Southern’s industrial development investments valued at $3.2B

Norfolk Southern’s partnership with 120 companies at the railroad’s industrial sites generated about $3.2 billion in investment in 2022.

The investments were for 159 projects to expand operations or create new facilities along NS’ network, the railroad said Thursday.

NS (NYSE: NSC) has more than 825 development-ready industrial sites available, as well as approximately 300 rail-to-truck transload facilities and 260 partnerships with short-line railroads.

Projects that kick-started in 2022 include:

Commercial Metals Co.’s new rebar steel mill in Berkeley County, West Virginia. Commercial Metals invested $450 million.
Packaging Corp. of America’s plans to invest $440 million in a Jackson, Alabama, facility that will produce linerboard for corrugated packaging.
Mark Anthony Brewing’s $400 million investment toward a new brewery and production facility in Richland, South Carolina.
NewCold’s large-scale distribution facility in McDonough, Georgia. NewCold will invest $333 million in the project.
Consol Energy’s plans to invest $100 million toward a plant in Itmann, West Virginia, that will produce premium, low-volatile metallurgical coal to service domestic and international steel markets, according to NS.
Fairwinds Landing’s plans to invest $100 million in Norfolk, Virginia, at Lambert’s Point Docks. The project will prepare the docks to serve as a maritime operations and logistics center that supports wind, defense and transportation industries.

NS said more industrial development projects are in the works in 2023 worth $30 billion. The projects belong to 33 companies that are planning new or expanded facilities along the networks of NS or its short line partners.

One such project is Hyundai Motor Group’s plans to develop a fully dedicated electric vehicle and battery manufacturing facility in Bryan County, Georgia. Hyundai announced plans for the $5.54 billion project last May.

“We help our clients identify rail-served sites that offer companies reliable, sustainable, and efficient transportation for their shipments,” said Craig Hudson, vice president of industrial development, in a news release. “Looking to 2023 and beyond, we are confident that our industrial development efforts will continue to drive growth for both our customers and Norfolk Southern, and our strong pipeline of opportunities underscores the confidence that our customers have in Norfolk Southern and freight rail.”

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