Customers invest $3.2B along Norfolk Southern's network in 2022

Rhea-AI Summary

Norfolk Southern Corporation (NYSE: NSC) reported a successful collaboration with 120 companies, resulting in 159 industrial projects in 2022. This initiative led to an investment of $3.2 billion and the creation of 3,940 jobs across its rail network. The company emphasizes its extensive resources, including 825 development-ready sites and partnerships aimed at supporting business growth. Key trends such as electric vehicle production and e-commerce growth are expected to propel future expansion. Norfolk Southern's pipeline signifies confidence among customers, with $30 billion in projected investments for new facilities and expansions planned for 2023.

Positive

• 159 industrial projects creating 3,940 jobs.
• $3.2 billion investment in 2022.
• Strong project pipeline with $30 billion in projected investments for 2023.
• Extensive resources including 825 development-ready sites.
• Attracting companies focused on electric vehicle production and e-commerce.

Negative

• None.

159 industrial development projects create 3,940 jobs

ATLANTA, Jan. 26, 2023 /PRNewswire/ -- Norfolk Southern Corporation (NYSE: NSC) partnered with 120 companies to facilitate 159 industrial development projects in 2022. The projects expanded operations or created new facilities along the company's rail network. Collectively, they represent $3.2 billion in investment and the creation of more than 3,940 new jobs.

"Our customers continue to leverage our business development and real estate expertise in addition to our world-class logistics network," said Norfolk Southern Executive Vice President and Chief Marketing Officer Ed Elkins. "With more than 825 development-ready industrial sites, approximately 300 rail-to-truck transload facilities, and 260 short-line partnerships, we have the capacity and connections to support our customers and earn new business."

Norfolk Southern's sustainable supply chain offerings and geographic footprint are attracting companies focused on growth, all in response to new market demands. According to Area Development, a leading publication for site selectors, nine out of the top 10 states in which to do business are served by Norfolk Southern. In addition, several economic trends are supporting future growth for the company and its customers, including increasing electric vehicle production, growth of e-commerce, reshoring/onshoring, and a focus by businesses to reduce their carbon emissions.

"In partnership with public and private sector leaders, Norfolk Southern is a catalytic agent in economic development," said Norfolk Southern Vice President Business Development and Real Estate Kathleen Smith. "We collaborate with customers and economic development allies to unlock the value of utilizing rail in supply chains, and we work together to accomplish the shared goal of creating jobs, investment, and volume."

Customers that Norfolk Southern provided industrial development support to included:

• Commercial Metals Company, as the company invests $450 million in Berkeley County, West Virginia for a new rebar steel mill.
• Packaging Corporation of America (PCA), as the company invests $440 million to produce linerboard used for corrugated packaging in Jackson, Alabama.
• Mark Anthony Brewing, as the company invests $400 million in a new state-of-the-art brewery and production facility in Richland, South Carolina.
• NewCold, as the company invests $333 million in building and operating an advanced, large-scale distribution facility in McDonough, Georgia.
• CONSOL Energy as the company invests $100 million to open the Itmann Preparation Plant in Itmann, West Virginia, to produce premium, low-vol metallurgical coking coal to serve the domestic and international steel markets.
• Fairwinds Landing as they invest $100 million in Norfolk, Virginia to transform Lambert's Point Docks into a maritime operations and logistics center that supports the offshore wind, defense, and transportation industries.

Norfolk Southern has a strong project pipeline of customer initiatives in 2023 and beyond. These include 33 companies that have announced plans for a new production facility or a significant plant expansion along Norfolk Southern's rail network – or with one of Norfolk Southern's short-line partners. The announcements represent $30 billion in projected investment and are prime opportunities for business development. For example, in May of 2022, Hyundai Motor Group stated plans to invest $5.54 billion in Bryan County, Georgia for its first fully dedicated electric vehicle and battery manufacturing facility.

"We help our clients identify rail-served sites that offer companies reliable, sustainable, and efficient transportation for their shipments," said Norfolk Southern Group Vice President Industrial Development Craig Hudson. "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."

In addition to the company's traditional business development capabilities, Norfolk Southern operates a customizable industrial site and transload location search engine, NSites. By using targeted filters, companies can sift through results based on acreage, location, existing warehousing, and proximity to highways, intermodal terminals, and port facilities. 

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 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

What are the recent industrial projects by Norfolk Southern?

Norfolk Southern facilitated 159 industrial projects in 2022, resulting in $3.2 billion in investments.

How many jobs did Norfolk Southern create in 2022?

Norfolk Southern created 3,940 jobs through its industrial development initiatives in 2022.

What is the projected investment for Norfolk Southern in 2023?

Norfolk Southern has a strong project pipeline with $30 billion in projected investments for new facilities and expansions in 2023.

How many development-ready sites does Norfolk Southern have?

Norfolk Southern has over 825 development-ready industrial sites.

What industries are driving growth for Norfolk Southern?

Key industries driving growth include electric vehicle production, e-commerce, and reshoring efforts.