For NS, $3.1B in 2023 Economic Development

Norfolk Southern in 2023 moved its first carloads at partner Idaho Forest Group’s new sawmill in Lamar County, Miss. (NS Photograph)

Norfolk Southern (NS) teamed with 62 customers on industrial development projects totaling $3.1 billion in 2023, reflecting expansion or construction of new facilities along the 22-state rail network, the Class I reported Jan. 9.

The projects created more than 4,150 new jobs, according to NS.

Scout Motors was among the customers in 2023 tapping the railroad’s industrial development and automotive logistics expertise, as the company announced it would invest $2 billion in a new Richland County, S.C.-based electric vehicle (EV) automotive manufacturing facility. Other EV activity located along NS lines, or with a short line partner, in 2023 include: General Motors and Samsung SDI’s $3 billion-plus investment in New Carlisle, Ind., to build an EV battery cell plant, which is expected to open in 2026; Albemarle’s $1.3 billion investment in a lithium hydroxide “Mega-Flex” facility in Chester County, S.C.; and Ford’s investment in Marshall, Mich., working with Contemporary Amperex Technology Co., Limited to build lithium iron phosphate batteries.

Metals and construction, and agriculture are among other growth areas for NS, the railroad said. Anchor Ingredients, for instance, announced in 2023 that it would invest $40 million in a new Richmond, Ind.-based pet food ingredient facility.

NS reported that it provided industrial development support to the following companies that began or boosted their rail service last year:

• Pure Cycle: Investing $363 million in Lawrence County, Ohio, for a new polypropylene recycling plant.
• Idaho Forest Group, LLC.: Investing $120 million in Lamar County, Miss., for a new lumber mill. NS’s partnership with the Mississippi Development Authority, Area Development Partnership, and local officials to support the company is “a prime example of how critical collaboration is to shared success,” according to the Class I. Because of that collaboration, Idaho Forest Group added nearly 200 new jobs in the region, and in November NS moved its first carloads.
• International Paper: Investing $100 million in Chester County, Pa., for a new corrugated packaging plant.
• Church & Dwight: Investing $50 million in Seneca County, Ohio, to expand its cat litter production plant.
• Jasper Forest Products: Investing $45 million in Walker County, Ala., to expand its lumber facility.
• Hollingshead Cement (a materials division of SRM Concrete): Investing $9.5 million in Delaware County, Ind., for a new cement distribution terminal. 
• Home Depot: Investing $8.5 million in Mecklenburg County, N.C., for a new rail-served lumber distribution facility.

Also in 2023, the Class I reported furthering other “strategic real estate investments and public-private partnerships.” They include:

• NS entering into a lease agreement with Norfolk, Va.-based Fairwinds Landing, LLC, which it said will create “a world-class maritime operations and logistics center that supports the offshore wind, defense and transportation industries.” In 2023, stakeholders broke ground on the center, where Dominion Energy Inc. will be the flagship tenant, and the U.S. Department of Transportation awarded the project a $39.3 million Port Infrastructure Development Grant.

• NS selling 16.7 acres to Colonial Terminals for the development of breakbulk infrastructure along the Savannah River in Georgia. The new NS-served facility, it said, will allow more than a million tons of throughput. The facility, which is expected to open this year, will also support the development of a new wide-span berth to move steel, paper, and other forest products, and will be capable of handling any general breakbulk cargo, according to the railroad.

According to NS, 2023 also marked the addition of 41 new rail-served industrial development sites that are included on its database, NSites, which debuted in 2021.

“At Norfolk Southern, our customer service extends beyond the track,” NS Vice President Business Development and Real Estate Kathleen Smith said. “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.”

“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,” Scout Motors Vice President of Growth Cody Thacker said. “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.”