Norfolk Southern to Invest Over $200 Million in 3B Corridor Serving Alabama

Aug. 13, 2024 - Norfolk Southern is investing to grow capacity on a key rail line in the state of Alabama, the 3B Corridor, which connects markets in northern and central Alabama to the Port of Mobile and destinations worldwide. The more-than $200 million investment positions the line to accommodate expected growth in several sectors as the Southeast progresses as an economic powerhouse for the US 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."

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.

"We are grateful to Norfolk Southern for these investments in our state and for their support of our existing industries," said Secretary of the Alabama Department of Commerce Ellen McNair. "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."

Norfolk Southern noted that a customer, Packaging Corporation of America, recently expanded its paper mill located along the corridor, partnering with Norfolk Southern on the project to enhance efficiencies for both companies.

Ross Corthell, PCA’s Vice President, Transportation, explained, "Without Norfolk Southern's investment in the region, we would not have been able to maximize the opportunity to ship more volume via rail. 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."

SOURCE: Norfolk Southern