Norfolk Southern plans to invest $200 million in 2025 to expand capacity on a key rail line that connects north and central Alabama to Mobile and beyond, the company and state announced.
The project will accommodate economic growth in the Southeast. The 3B Corridor connects to the Port of Mobile, which had an increasing economic impact of $98 billion in 2022.
“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,” said Norfolk Southern President and CEO Alan H. Shaw.
According to a release, the project includes a mix of terminal and track-based infrastructure improvements, including capacity projects, customer-specific projects and yard upgrades. Currently, Norfolk Southern is collaborating on a project to allow high-volume met coal customers to take advantage of the 3B Corridor. Set for development in 2025, a new met coal production facility will help power global production of metals products.
The Packaging Corp. of America, partnering with Norfolk Southern, recently expanded its paper mill along the corridor. Corporation Vice President Ross Corthell said the expansion would not have been possible without Norfolk Southern’s investment in the region.
“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,” he said.
Secretary of the Alabama Department of Commerce Ellen McNair said the investment is good for the state.
“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,” she said.