Norfolk Southern Corp. is investing more than $200 million to grow capacity on a key rail line in Alabama, the 3B Corridor, which connects markets in northern and central Alabama to the Port of Mobile and destinations worldwide.
The investment project positions the line to accommodate expected growth in several sectors as the Southeast progresses as an economic powerhouse for the U.S. economy.
The 3B Corridor is strategically aligned with the Port of Mobile, which contributes $85 billion in annual economic value to Alabama.
The corridor represents an important segment of Norfolk Southern’s annual traffic, serving critical industries like agriculture, automotive, chemicals, forestry, and steel.
The investments are expected to yield immediate returns when they begin to come online in 2025.
“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,” he added.
Ellen McNair, Secretary of the Alabama Department of Commerce, said the investments are good news for the state’s economic growth prospects.
“We are grateful to Norfolk Southern for these investments in our state and for their support of our existing industries,” Secretary McNair said. “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,” she added.
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.
Already, 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.
Another customer, Packaging Corp. 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 Ross Corthell, PCA’s vice president, transportation.
“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.”
With 1,300 miles of track operated, Norfolk Southern serves 565 customers in Alabama and has over 1,500 employees.