For NS, $3.2B in 2022 Economic Development

Written by Marybeth Luczak, Executive Editor
image description

Norfolk Southern (NS) customers invested $3.2 billion in industrial development projects along its network in 2022.

The investment by 120 companies is spread across 159 projects, which are slated to generate more than 3,940 new jobs, the Class I railroad reported on Jan. 26.

“Our customers continue to leverage our business development and real estate expertise in addition to our world-class logistics network,” NS Executive Vice President and Chief Marketing Officer Ed Elkins said. “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.”

NS also attributed its success to several economic trends that support future growth for the company and its customers: increasing electric vehicle production, growth of e-commerce, re-shoring/on-shoring, and a focus by businesses to reduce their carbon emissions. The railroad noted that nine of the top 10 states in which to do business are served by NS. Those states are Georgia, Tennessee, South Carolina, North Carolina, Virginia, Alabama, Ohio, Indiana and Mississippi, according to Area Development, a leading publication for site selectors.

Among the customers that NS teamed with 2022:

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

According to NS, it has a “strong project pipeline of customer initiatives in 2023 and beyond,” including 33 companies that have announced plans for a new production facility or a significant plant expansion along the NS network or one of its short line partner networks. Those announcements represent $30 billion in projected investment, reported the railroad, which noted in May 2022, Hyundai Motor Group stated plans to invest $5.54 billion in Bryan County, Ga., for its first fully dedicated electric vehicle and battery manufacturing facility.

“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,” NS Vice President Business Development and Real Estate Kathleen Smith said.

Added NS Group Vice President Industrial Development Craig Hudson: “We help our clients identify rail-served sites that offer companies reliable, sustainable and efficient transportation for their shipments.”

In addition to NS’s traditional business development capabilities, the railroad operates a customizable industrial site and transload location search engine, NSites, which debuted in 2021.

Tags: , ,