Customers invest $3.1B along Norfolk Southern's network in 2023

Rhea-AI Summary

Norfolk Southern Corporation (NSC) partnered with 62 customers to complete strategic industrial development projects in 2023, representing $3.1 billion in investment and the creation of more than 4,150 new jobs. The company facilitated growth in the electric vehicle industry, metals and construction, agriculture, and more, with significant investments from companies like Scout Motors, General Motors, Samsung SDI, Albemarle, Ford, Anchor Ingredients, Pure Cycle, Idaho Forest Group, International Paper, Church & Dwight, Jasper Forest Products, Hollingshead Cement, and Home Depot. Norfolk Southern also made strategic real estate investments and public-private partnerships, creating a world-class maritime operations and logistics center in Norfolk, Virginia, and developing breakbulk infrastructure along the Savannah River in Georgia. The company added 41 new rail-served industrial development sites, now featured on its customizable search database, NSites.

Insights

Market Research Analyst

The strategic industrial development projects completed by Norfolk Southern Corporation in 2023 have significant implications for various industries and the overall economy. The $3.1 billion investment and creation of over 4,150 new jobs indicate a positive trend in industrial growth, particularly in the rail network's influence on regional development. The partnerships with companies such as Scout Motors for an electric vehicle manufacturing facility and investments by major players like General Motors and Samsung SDI, suggest a strong focus on the electric vehicle market, which is rapidly growing due to increased environmental concerns and technological advancements.

These developments could lead to increased freight volumes for Norfolk Southern, enhancing revenue streams and potentially leading to improved stock performance. The diversification of its customer portfolio, with projects spanning from automotive logistics to agriculture, positions Norfolk Southern well for stability against market fluctuations. Investors might view these strategic moves as indicators of Norfolk Southern's long-term growth potential and its ability to adapt to emerging market trends.

Environmental Sustainability Analyst

Norfolk Southern's involvement in projects that support environmental sustainability, such as the EV battery cell plant and the lithium hydroxide Mega-Flex facility, aligns with global efforts to reduce carbon emissions. The company's commitment to creating a more environmentally friendly economic ecosystem through rail transport, which is generally more fuel-efficient and less polluting than road transport, is a significant step toward sustainable logistics. This approach not only benefits the communities along its network but also aligns with investor interests in environmentally responsible companies.

The emphasis on sustainable growth opportunities, such as the polypropylene recycling plant and the new lumber mill, reflects a strategic positioning that could attract investors with an environmental focus. By leveraging its rail network for these green initiatives, Norfolk Southern may benefit from potential government incentives and a positive public image, which could translate into increased shareholder value over the long term.

Financial Analyst

The financial implications of Norfolk Southern's industrial development projects are multifaceted. The direct investment of $3.1 billion across various sectors has the potential to generate significant revenue for the company through new service contracts and increased rail traffic. Additionally, the creation of over 4,150 jobs can have a multiplier effect on the economy, potentially leading to increased consumer spending and further business development in the regions served by Norfolk Southern.

From a financial perspective, the company's strategic real estate investments and public-private partnerships, such as the development of Fairwinds Landing and the sale of land to Colonial Terminals, indicate an active management of assets to optimize returns. These moves could result in a diversified income stream, enhancing the company's financial resilience. Investors and analysts should monitor the operational efficiency gains from these developments, as they could lead to improved margins and profitability for Norfolk Southern.

Company helped 62 industrial development customers generate 4,156 new jobs

ATLANTA, Jan. 9, 2024 /PRNewswire/ -- Norfolk Southern Corporation (NYSE: NSC) partnered with 62 customers to complete strategic industrial development projects in 2023. The projects expanded operations or created new facilities along Norfolk Southern's rail network. Collectively, the projects represent $3.1 billion in investment and the creation of more than 4,150 new jobs.

"Norfolk Southern worked with customers and economic development partners to facilitate broad-based industrial development in 2023 and set the stage for growth in 2024," said Executive Vice President and Chief Marketing Officer Ed Elkins. "Our 2023 project list, and 2024 pipeline, reflect our ability to serve a diverse customer portfolio with our expanding supply chain offerings. We're making further productivity enhancements – demonstrating to our existing and prospective customers that Norfolk Southern is a safe, reliable, and efficient railroad, and a partner for growth."

Scout Motors tapped Norfolk Southern's industrial development and automotive logistics expertise in 2023, as the company announced it will invest $2 billion in Richland County, South Carolina, for a new electric vehicle automotive manufacturing facility.

"Scout Motors is planning a state-of-the-art production facility in South Carolina that brings together cutting-edge automotive manufacturing technology and logistics operations," said Vice President of Growth at Scout Motors Cody Thacker. "Norfolk Southern is an important link in the supply chain for Scout Motors that served as a valuable early planning partner and collaborator. Incorporating inbound and outbound rail service will allow Scout Motors to sustainably handle rapid production growth, to remain sensitive to the communities surrounding the plant, and to deliver hundreds of thousands of Scout trucks and SUVs to consumers across America."

Adding to the robust opportunity created by Scout Motors, other electric vehicle (EV) activity located along Norfolk Southern lines, or with a short line partner, in 2023:

1. General Motors and Samsung SDI, as the companies invest more than $3 billion in New Carlisle, Indiana to build an EV battery cell plant.
2. Albemarle, as the company invests $1.3 billion in Chester County, South Carolina for a lithium hydroxide Mega-Flex facility.
3. Ford, as the company makes a significant investment in Marshall, Michigan, using knowledge and services from Contemporary Amperex Technology Co., Limited (CATL), to build lithium iron phosphate batteries.

Norfolk Southern is seeing growth in several markets: metals and construction, agriculture, and more. For example, Anchor Ingredients, announced the company would invest $40 million in Richmond, Indiana for a new pet food ingredient facility in 2023.

"At Norfolk Southern, our customer service extends beyond the track," said Norfolk Southern Vice President Business Development and Real Estate Kathleen Smith. "In partnership with our customers and allies in economic development, we are committed to unlocking the full value of rail to our nation's supply chain. Together, our shared mission is to create a more environmentally friendly economic ecosystem that benefits communities along our 22-state network and yields smart, sustainable growth opportunities for our customers."

Norfolk Southern provided industrial development support to the following companies that began or increased their rail service in 2023:

1. Pure Cycle, as the company invests $363 million in Lawrence County, Ohio for a new polypropylene recycling plant.
2. Idaho Forest Group, LLC., as the company invests $120 million in Lamar County, Mississippi for a new lumber mill.
3. International Paper, as the company invests $100 million in Chester County, Pennsylvania for a new corrugated packaging plant.
4. Church & Dwight, as the company invests $50 million in Seneca County, Ohio for an expansion to their current cat litter production plant.
5. Jasper Forest Products, as the company invests $45 million in Walker County, Alabama to expand their lumber facility.
6. Hollingshead Cement, a materials division of SRM Concrete, as the company invests $9.5 million in Delaware County, Indiana for a new cement distribution terminal. 
7. Home Depot, as the company invests $8.5 million in Mecklenburg County, North Carolina for a new rail-served lumber distribution facility.

Norfolk Southern also furthered other strategic real estate investments and public-private partnerships in 2023. In Norfolk, Virginia, stakeholders broke ground on Fairwinds Landing in June of 2023. With the announcement of Dominion Energy Inc. as a flagship tenant and a $39.2 million grant from the U.S. Department of Transportation this year, the lease agreement Norfolk Southern entered into with Fairwinds Landing, LLC will create a world-class maritime operations and logistics center that supports the offshore wind, defense, and transportation industries.

And in June of 2023, Norfolk Southern sold 16.7 acres to Colonial Terminals for the development of breakbulk infrastructure along the Savannah River in Georgia. The new facility will be directly served by Norfolk Southern and will allow more than a million tons of throughput. The facility will also support the development of a new wide-span berth to move steel, paper, and other forest products. And it will be capable of handling any general breakbulk cargo.

In 2023, Norfolk Southern also added 41 new rail-served industrial development sites that are now featured on its customizable search database, NSites. Those looking to locate or expand their business on rail in 2024 can contact Norfolk Southern's Business Development and Real Estate team and take advantage of a full suite of resources on its brand-new, customer-centric website, NorfolkSouthern.com.  

About Norfolk Southern
Since 1827, Norfolk Southern Corporation (NYSE: NSC) and its predecessor companies have safely moved the goods and materials that drive the U.S. economy. Today, it operates a customer-centric and operations-driven freight transportation network. Committed to furthering sustainability, Norfolk Southern helps its customers avoid approximately 15 million tons of yearly carbon emissions by shipping via rail. Its dedicated team members deliver more than 7 million carloads annually, from agriculture to consumer goods, and is the largest rail shipper of auto products and metals in North America. Norfolk Southern also has the most extensive intermodal network in the eastern U.S., serving a majority of the country's population and manufacturing base, with connections to every major container port on the Atlantic coast as well as the Gulf of Mexico and Great Lakes. Learn more by visiting www.NorfolkSouthern.com.

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SOURCE Norfolk Southern Corporation

FAQ

How many jobs were created by Norfolk Southern's strategic industrial development projects in 2023?

Norfolk Southern's projects created more than 4,150 new jobs.

What was the total investment represented by the industrial development projects in 2023?

The projects represented $3.1 billion in investment.

Which companies made significant investments in electric vehicle and other industries along Norfolk Southern's rail network in 2023?

Companies like Scout Motors, General Motors, Samsung SDI, Albemarle, Ford, Anchor Ingredients, Pure Cycle, Idaho Forest Group, International Paper, Church & Dwight, Jasper Forest Products, Hollingshead Cement, and Home Depot made significant investments.

What strategic real estate investments and public-private partnerships did Norfolk Southern make in 2023?

Norfolk Southern created a world-class maritime operations and logistics center in Norfolk, Virginia, and developed breakbulk infrastructure along the Savannah River in Georgia. The company also added 41 new rail-served industrial development sites.

Where can businesses find the new rail-served industrial development sites added by Norfolk Southern?

Businesses can find the new rail-served industrial development sites on Norfolk Southern's customizable search database, NSites.

How can businesses looking to locate or expand on rail in 2024 get in touch with Norfolk Southern?

Businesses can contact Norfolk Southern's Business Development and Real Estate team and take advantage of a full suite of resources on its brand-new, customer-centric website, NorfolkSouthern.com.