Norfolk Southern on Monday said that its new domestic interline service with Union Pacific out of Louisville is now shipping for anchor customers including GE Appliances.
The bi-directional service opens a new gateway connecting Kentucky’s manufacturing base to key domestic markets and global trade corridors via western and southwestern ports.
“This new service underscores our commitment to helping American manufacturers expand and compete in new markets,” said Ed Elkins, Norfolk Southern executive vice president and chief commercial officer, in a release. “Kentucky is a pivotal production and distribution hub, and, if approved, a true coast-to-coast railroad stands to unlock even greater opportunities for growth and connectivity in the years ahead.”
The railroads in late July announced an agreement for UP (NYSE: UNP) to acquire NS (NYSE: NSC) in an historic deal that would create the first coast-to-coast transcontinental freight railroad. The merger requires approval by the Surface Transportation Board, which could receive the railroads’ formal application as soon as November.
Carriers cite Kentucky manufacturing momentum
Kentucky is a national leader in consumer goods manufacturing, ranking in the top 10 states with more than 6,000 facilities employing 260,000 contributing $47.5 billion annually to the state’s GDP. It specializes in electric vehicle battery production, automotive, aerospace, and bourbon exports. Louisville offers direct access to major highways, rail lines, and inland ports, along with ample skilled labor.
Norfolk Southern in Louisville has so far focused on international intermodal, and has modified its terminal footprint to expand parking and track capacity to better serve the domestic market.
“Louisville is the heart of American manufacturing and the intersection where location, innovation and logistics meet to ship goods and services to people across the country and around the world,” said Louisville Mayor Craig Greenberg, in the release. “Norfolk Southern and Union Pacific’s investment to build a new domestic rail service between Louisville and key West Coast and Southern markets is proof that the future of business and manufacturing runs straight through our city.”
GE Appliances, a Haier company, in Louisville operates its Appliance Park campus of five major manufacturing plants and the company’s global headquarters. The site contributes $12.8 billion annually to Kentucky’s gross domestic product, and supports more than 38,000 jobs. GE’s recent investments include a $490 million expansion to bring washer production back to the United States with smart factory technologies such as automation, robotics, and vertical integration. The expansion will also create 800 new full-time jobs.
“The Norfolk Southern Appliance Park domestic intermodal ramp is a strategic gateway for GE Appliances, supporting our continued growth,” said Adam Wiseman, senior director of logistics responsible for strategy, inventory & deployment at GE Appliances, in the release. “This service strengthens our ability to deliver innovation at scale and reach customers faster and more efficiently while also removing trucks from the highway.”
Scalable service across a range of industries
The rail service will deliver scalable capacity and flexible solutions for customers across a range of industries including automotive, consumer goods, food and beverage, healthcare, and manufacturing.
Norfolk Southern will interchange with UP and its western network via the latter’s new Kansas City Intermodal Terminal, with onward connections to Los Angeles, Lathrop, Calif., Seattle, Portland, Salt Lake City and Houston. NS serves a range of destinations via 54 intermodal ramps including major ports on the East and Gulf coasts, and Great Lakes.
“Our customers want optionality and fast, reliable freight service that allows them to compete and expand into new markets. This new intermodal service gives them a critical transportation tool to win, providing reliable access to western and southern markets, while leveraging Union Pacific’s expanded Kansas City Intermodal Terminal in the Midwest,” said Kenny Rocker, executive vice president – marketing and sales at Union Pacific, in the release.
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