6.0  AREA FREIGHT RAIL ACTIVITIES   The major freight rail providers operating throughout the greater region are currently involved in a range of activities.  The following summaries, covering a range of subject matter, are meant to provide a “snapshot” of some current events.  These summary materials are regularly distributed to interested parties as part of ongoing educational efforts.   Area Freight Rail Activity materials include:   

• New England Rail Forum & Expo, Providence, RI, March 2008 • New England Rail Forum & Expo, Worcester, March 24, 2009 • CSX Transportation, Agreement with Massachusetts • Grafton & Upton Railroad, Revitalization & Expansion • Mass Central Railroad Corporation, Track Improvements • Pan Am Southern, Patriot Corridor with Norfolk Southern • Providence & Worcester Railroad Company, Locomotive Retrofits 

 

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A COMPLETE GUIDE TO THE EXPO FOR BOTH ATTENDEES AND EXHIBITORSINCLUDING ALL RESERVATION FORMS

Join together with industry professionals as we explore the current and future state of freight,inter-city passenger, and transit operations in New England and beyond.

Information: 617.437.7810 www.nerailroadclub.com

March 25, 2008Rhode Island Convention Center

2008New England Rail Forum & Expo

Providence, Rhode Island

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DEVAL L. PATRICK

GOVERNOR

TIMOTHY P. MURRAY

LIEUTENANT GOVERNOR

September 23, 2009 - For immediate release:

PATRICK-MURRAY ADMINISTRATION FINALIZES AGREEMENT WITH CSX TRANSPORTATION

Historic agreement re-defines passenger and freight rail system in the Commonwealth

BOSTON – Wednesday, September 23, 2009 – Lieutenant Governor Timothy P. Murray today announced that the

Commonwealth’s comprehensive multi-year rail transportation agreement with CSX Transportation (CSXT), the

national freight carrier serving Massachusetts, has been finalized. The announcement was made during Lieutenant

Governor Murray’s keynote address before a crowd of approximately 300 business leaders at the Greater Boston

Chamber of Commerce Government Affairs breakfast.

Lieutenant Governor Murray, who has been working on this agreement since he was Mayor of Worcester, led the

negotiations for this agreement on behalf of the administration with critical support from the Governor, Senator John

Kerry and Congressman Jim McGovern. Many of the agreement’s major elements were resolved last year; however,

the long standing debate concerning liability remained unresolved.

Today, Lieutenant Governor Murray proudly announced all parties reached an agreement under which CSXT will help

defray the MBTA’s liability insurance cost and pay the deductible on the liability insurance policy if an accident occurs

involving a freight train and CSXT is clearly at fault because of willful misconduct.

“Consistent with our commitment to improve transportation service throughout the Commonwealth, we have done

more to deliver on the South Coast rail project than any other administration," said Governor Deval Patrick. “This is a

critical milestone, and I thank Lieutenant Governor Murray for his leadership, and Senator Kerry, Congressman

McGovern, and CSXT leaders for all coming to the table and staying there until we could get a deal that works.”

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“The Governor and I have been dedicated to improving our freight and passenger rail system for the long-term health

of our economy and our environment,” said Lieutenant Governor Murray. “We are thankful for the continued support

of Senator Kerry and Congressman McGovern, who have both been by our side, helping us achieve the best interest

for the Commonwealth. I also commend CSXT for its commitment to seeing this agreement to fruition. A vibrant rail

network that serves both passengers and freight needs is an important part of our transportation system.”

“This deal is a tremendous victory with countless benefits for Massachusetts – it’s a boost to our economy, it’ll help

reduce pollution, and it will relieve congestion on the roads. It’s been a long slog, but anyone who has ever been

stuck in traffic on the Mass Pike or taken the commuter rail from Worcester to Boston will agree that it was worth

every last minute on the phone, every hour in the conference room, and every heated discussion at the negotiating

table. After clearing the liability hurdle, we were able to finish the important work of linking the economies, businesses

and homes of Worcester, New Bedford and Fall River with Boston," said Senator John Kerry. "I want to thank CSX for

their effort and I’m proud to be part of a group - including Lieutenant Governor Tim Murray and Congressman Jim

McGovern – that refused to go away until this was done."

“This announcement is terrific news for commuters in Massachusetts,” Representative Jim McGovern said.

“Increasing commuter rail service to Worcester and Fall River has long been a priority of mine. It will ease congestion

on our roads, increase economic development and benefit our environment. This agreement is the product of a lot of

hard work and some difficult negotiations, and I want to thank Senator Kerry, Governor Patrick and Lieutenant

Governor Murray for all of their efforts.”

“This final agreement results from a lot of hard work on the part of many, many people over a long period of time,”

said Transportation Secretary James Aloisi. “But our work is not done. We look forward to a new partnership with

CSXT on these and other issues and are happy to further advance the prospects for increased MBTA service that

this agreement provides.”

“This is a great development for the Commonwealth, its residents, its environment and its economy,” said Michael J.

Ward, CSX Chairman, President and Chief Executive Officer. “CSXT, Lieutenant Governor Tim Murray and the

entire Patrick-Murray Administration have worked closely to create solutions that work for the Commonwealth, CSXT

and its customers. In addition to commuter service, the plan will give the Commonwealth a double-stack freight rail

route that will help alleviate congestion on Massachusetts highways.”

The main elements of the agreement include:

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• The Commonwealth will purchase the property rights of the Boston to Worcester rail line from CSXT,

increasing the potential for additional commuter service while also taking control of dispatching and

maintenance on the line. Through the development of this agreement, the MBTA has already been able to add

five Framingham-Boston commuter trains to Worcester on CSX Transportation’s Boston line.

• The Commonwealth and CSXT will increase the vertical clearances of bridges along the railroad main line

between I-495 and the New York State line to accommodate double-stack freight trains. The Commonwealth

will assume responsibility for raising highway bridges, while CSXT will be responsible for lowering tracks.

• In conjunction with the Patrick-Murray Administration’s South Coast Rail Corridor Plan, the Commonwealth will

purchase the New Bedford-Fall River Line from CSXT. The Commonwealth will also purchase the Boston

Terminal Running Track and West First Street Yard in South Boston and CSXT’s ownership of the Grand

Junction secondary line that extends from Beacon Park Yard through Cambridge to East Boston from CSXT.

• In an effort to create capacity for additional commuter rail service over time, the Commonwealth will help CSXT

relocate the company’s operations out of Beacon Park Yard in Boston. This relocation will facilitate the

redevelopment and reuse of this strategic parcel of land.

• Federal law requires that a new, state-of-the-art technology known as a “positive train control” system will be

installed to provide improved rail safety. The new system will monitor rail traffic, and can automatically stop

train movements in an area if it detects a potential conflict.

• Passenger and freight trains will operate, as much as possible, in exclusive “windows” of time, thereby

reducing the chance for conflict and assisting with the efficiency of both freight and passenger service.

• Allocates liability amongst the parties in a way that provides incentives for both parties to operate safely,

ensures that payments are made quickly to anyone injured in an accident, and encourages joint problem

solving to correct safety concerns.

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• CSXT will contribute $500,000 to help defray the cost of the liability insurance policy the MBTA carries for the

entire commuter system. Additionally, in the event an accident occurs involving a freight train and CSXT is

clearly at fault because of willful misconduct, the rail road will be responsible to pay the deductible on that

policy, up to a maximum of $7.5 million per accident.

In July, the Patrick-Murray Administration joined the New England Governors in announcing a coordinated regional

vision for high speed rail that will connect major cities and airports, and support economic growth throughout the

region. The Vision for the New England High Speed and Intercity Rail Network lays out key projects to strengthen

passenger and freight rail service along new and existing rail corridors. To learn more about New England's rail

vision visit: http://www.eot.state.ma.us/recovery/HSR.htm.

 

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From: Gene Phillips [mailto:ephillips.hopedale@comcast.net] Sent: Thursday, August 21, 2008 3:58 PM To: Richard T Moore; Phil Shwachman; Rep John Fernandes (Rep); Barry Fiengold; Lawrence Adams; Jon Delli Priscole; Ted Carman; Michael Ruane; Alan & Theresa Ryan; Bob Burns; Eugene Phillips (H); Mike Collins Cc: 'Eugene Phillips (H)' Subject: Everyone: The Selectman at their meeting on August 1 asked me to look into the feasibility and practicality of getting a Commuter Rail Station in Hopedale. Such a station would be on an upgraded section of the Grafton and Upton Railroad (“GURR”) connecting to the existing MBTA Station at Forge Park. In order to take the next step in this process, I would like to have a meeting of key participants to discuss the issues that might be involved. The meeting will be in the Hopedale Town Hall on Monday, September 8, at 1:00 pm. Mr. Delli Priscolli, the owner of the GURR, has said that he is interested in exploring the possibility of getting a commuter rail station in Hopedale, and would be happy to work cooperatively with the town to explore whether it might be feasible. He is not interested, however, in any extension of commuter rail service to the north of Hopedale. Mr. Shwachman is also interested in and will cooperate with this effort. By way of background, I have attached a map showing the location of the various rail lines that are relevant to this discussion. It shows the Franklin, Forge Park, and Grafton Stations (The Grafton Station is on the Worcester Line). It shows the Grafton and Upton RR as a green line. The MBTA’s commuter rail lines are in red. The section of blue CSX line from Forge Park north into Milford is in current use by CSX, but we understand is owned by the MBTA. Eight to ten miles of MBTA and GURR track would have to be substantially upgraded in order to accommodate commuter rail trains speeds. Substantial work would be required at each of the street crossings, and two new stations would need to be constructed – presumably one in Milford as well as one in Hopedale. The GURR sidings in Hopedale could be helpful to the MBTA’s commuter rail logistics on the Franklin line, because there are no sidings available to park an inactive train at Forge Park. It is also understood that the Franklin Line is not at capacity at this time, and therefore could absorb the additional train service. This is an exciting concept, and if it was to be feasible would undoubtedly have a major impact on the overall potential for attracting investment dollars to the Draper Factory site in Hopedale. Please let me know whether you will be able to attend the meeting. Thanks very much, Eugene N. Phillips Town Coordinator PO Box 7, 78 Hopedale Street Hopedale, MA 01747 Tel: (508)634-2203 ext 213 Fax: (508)634-2200 Cel: (508)889-3950 

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From: Ted Carman [mailto:carman@concordsqdev.com] Sent: Wednesday, August 20, 2008 1:12 PM To: Lawrence Adams Subject: Hopedale Commuter Rail Station Larry: It appears that the meeting to discuss the possibility of a Commuter Rail Station in Hopedale will be on September 8, 2008 at 1:00 pm in Hopedale (probably town hall). You should get an invitation shortly. Hope you can make it. The following is a short overview:

Mr. Delli Priscolli, the owner of the Grafton Upton Railroad (GURR), has said that he is interested in exploring the possibility of getting a commuter rail station in Hopedale, and would be happy to work cooperatively with the town to determine whether it might be feasible. He is not interested, however, in any extension of commuter rail service to the north of Hopedale. Mr. Shwachman is also interested in and will cooperate with this effort. By way of background, attached is a map showing the location of the various rail lines that are relevant to this discussion. It shows the Franklin, Forge Park, and Grafton Stations (The Grafton Station is on the Worcester Line). It shows the Grafton and Upton RR as a green line. The MBTA’s commuter rail lines are in red. The section of blue CSX line from Forge Park north into Milford is in current use by CSX, but we understand is owned by the MBTA. Eight to ten miles of MBTA and GURR track would have to be substantially upgraded in order to accommodate commuter rail trains speeds. Substantial work would be required at each of the street crossings, and two new stations would need to be constructed – presumably one in Milford as well as one in Hopedale. The GURR sidings in Hopedale could be helpful to the MBTA’s commuter rail logistics on the Franklin line, because there are no sidings available to park an inactive train at Forge Park. It is also understood that the Franklin Line is not at capacity at this time, and therefore could absorb the additional train service.

This is an exciting concept, and if it was to be feasible would undoubtedly have a major impact on the overall potential for attracting investment dollars to the Draper Factory site in Hopedale. We look forward to getting the input and assistance of the Regional Planning Commission. Ted Concord Square Planning & Development, Inc. 294 Washington Street, Suite 638 Boston, MA 02108 Carman@concordsqdev.com www.ConcordSqDev.com 617 482 1997 Phone 617 482 0997 Fax 617 719 5573

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Hopedale town Worcester Co. MA East Hartford town Hartford Co. CT 6 Hopedale town Worcester Co. MA Attleboro city Bristol Co. MA 5 Hopedale town Worcester Co. MA New Bedford city Bristol Co. MA 7 Hopedale town Worcester Co. MA North Attlebor. town Bristol Co. MA 4 Hopedale town Worcester Co. MA Taunton city Bristol Co. MA 9 Hopedale town Worcester Co. MA Lynn city Essex Co. MA 6 Hopedale town Worcester Co. MA Arlington town Middlesex Co. MA 9 Hopedale town Worcester Co. MA Ashby town Middlesex Co. MA 9 Hopedale town Worcester Co. MA Ashland town Middlesex Co. MA 34 Hopedale town Worcester Co. MA Billerica town Middlesex Co. MA 21 Hopedale town Worcester Co. MA Burlington town Middlesex Co. MA 10 Hopedale town Worcester Co. MA Cambridge city Middlesex Co. MA 25 Hopedale town Worcester Co. MA Chelmsford town Middlesex Co. MA 8 Hopedale town Worcester Co. MA Concord town Middlesex Co. MA 18 Hopedale town Worcester Co. MA Framingham town Middlesex Co. MA 155 Hopedale town Worcester Co. MA Holliston town Middlesex Co. MA 66 Hopedale town Worcester Co. MA Hopkinton town Middlesex Co. MA 201 Hopedale town Worcester Co. MA Hudson town Middlesex Co. MA 5 Hopedale town Worcester Co. MA Lexington town Middlesex Co. MA 9 Hopedale town Worcester Co. MA Lowell city Middlesex Co. MA 7 Hopedale town Worcester Co. MA Marlbor. city Middlesex Co. MA 78 Hopedale town Worcester Co. MA Medford city Middlesex Co. MA 8 Hopedale town Worcester Co. MA Natick town Middlesex Co. MA 94 Hopedale town Worcester Co. MA Newton city Middlesex Co. MA 13 Hopedale town Worcester Co. MA Shirley town Middlesex Co. MA 10 Hopedale town Worcester Co. MA Somerville city Middlesex Co. MA 19 Hopedale town Worcester Co. MA Waltham city Middlesex Co. MA 75 Hopedale town Worcester Co. MA Watertown city Middlesex Co. MA 7 Hopedale town Worcester Co. MA Weston town Middlesex Co. MA 25 Hopedale town Worcester Co. MA Winchester town Middlesex Co. MA 18 Hopedale town Worcester Co. MA Woburn city Middlesex Co. MA 33 Hopedale town Worcester Co. MA Bellingham town Norfolk Co. MA 70 Hopedale town Worcester Co. MA Braintree town Norfolk Co. MA 8 Hopedale town Worcester Co. MA Canton town Norfolk Co. MA 19 Hopedale town Worcester Co. MA Dedham town Norfolk Co. MA 7 Hopedale town Worcester Co. MA Dover town Norfolk Co. MA 12 Hopedale town Worcester Co. MA Franklin city Norfolk Co. MA 50 Hopedale town Worcester Co. MA Medfield town Norfolk Co. MA 19 Hopedale town Worcester Co. MA Medway town Norfolk Co. MA 22 Hopedale town Worcester Co. MA Millis town Norfolk Co. MA 17 Hopedale town Worcester Co. MA Needham town Norfolk Co. MA 24 Hopedale town Worcester Co. MA Norfolk town Norfolk Co. MA 7 Hopedale town Worcester Co. MA Norwood town Norfolk Co. MA 52 Hopedale town Worcester Co. MA Plainville town Norfolk Co. MA 7 Hopedale town Worcester Co. MA Quincy city Norfolk Co. MA 20 Hopedale town Worcester Co. MA Randolph town Norfolk Co. MA 9 Hopedale town Worcester Co. MA Sharon town Norfolk Co. MA 3 Hopedale town Worcester Co. MA Walpole town Norfolk Co. MA 9 Hopedale town Worcester Co. MA Wellesley town Norfolk Co. MA 20 Hopedale town Worcester Co. MA Westwood town Norfolk Co. MA 16 Hopedale town Worcester Co. MA Weymouth town Norfolk Co. MA 7 Hopedale town Worcester Co. MA Wrentham town Norfolk Co. MA 5

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Hopedale town Worcester Co. MA Hingham town Plymouth Co. MA 19 Hopedale town Worcester Co. MA Norwell town Plymouth Co. MA 10 Hopedale town Worcester Co. MA Plymouth town Plymouth Co. MA 10 Hopedale town Worcester Co. MA Boston city Suffolk Co. MA 111 Hopedale town Worcester Co. MA Berlin town Worcester Co. MA 7 Hopedale town Worcester Co. MA Blackstone town Worcester Co. MA 11 Hopedale town Worcester Co. MA Charlton town Worcester Co. MA 17 Hopedale town Worcester Co. MA Clinton town Worcester Co. MA 7 Hopedale town Worcester Co. MA Grafton town Worcester Co. MA 6 Hopedale town Worcester Co. MA Hopedale town Worcester Co. MA 358 Hopedale town Worcester Co. MA Leicester town Worcester Co. MA 8 Hopedale town Worcester Co. MA Lunenburg town Worcester Co. MA 7 Hopedale town Worcester Co. MA Mendon town Worcester Co. MA 59 Hopedale town Worcester Co. MA Milford town Worcester Co. MA 594 Hopedale town Worcester Co. MA Northbridge town Worcester Co. MA 9 Hopedale town Worcester Co. MA Southbor. town Worcester Co. MA 29 Hopedale town Worcester Co. MA Southbridge town Worcester Co. MA 7 Hopedale town Worcester Co. MA Upton town Worcester Co. MA 23 Hopedale town Worcester Co. MA Uxbridge town Worcester Co. MA 11 Hopedale town Worcester Co. MA Webster town Worcester Co. MA 19 Hopedale town Worcester Co. MA Westbor. town Worcester Co. MA 59 Hopedale town Worcester Co. MA West Brookfield town Worcester Co. MA 7 Hopedale town Worcester Co. MA Worcester city Worcester Co. MA 134 Hopedale town Worcester Co. MA Cranston city Providence Co. RI 7 Hopedale town Worcester Co. MA Pawtucket city Providence Co. RI 30 Hopedale town Worcester Co. MA Providence city Providence Co. RI 21  

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From: Ann Gillespie [mailto:anrickel@comcast.net] Sent: Saturday, October 03, 2009 10:37 AM To: Richard Rydant Subject: Fast freight Railroads target $140M for northern route 155-MILE-LONG ‘PATRIOT CORRIDOR' Note: This email is generated. Please do NOT reply to this email.

 

This story has been sent to you from www.telegram.com by Ann Gillespie (anrickel@comcast.net) Comments from Ann Gillespie:

 

October 02. 2009 9:18AM

Fast freight Railroads target $140M for northern route 155-MILE-LONG ‘PATRIOT CORRIDOR' By Priyanka Dayal TELEGRAM & GAZETTE STAFF AYER — Prisco R. Morella expects a delivery every day. On Wednesday, it came at 1:45 in the afternoon — 126,000 gallons of vegetable oil. A freight train stopped on the track alongside the big brown building that belongs to Catania-Spagna Corp. Mr. Morella, bulk manager, and crew spent 12 hours pumping six cars of oil into huge silos inside the plant. From there, the oil is packaged and trucked out for sale. Catania-Spagna moves more than half a million gallons of edible oil a week, and for that it needs freight rail service. It is one of many plants in Ayer's active industrial zone, and one that stands to benefit from a major freight rail investment that is under way. Norfolk Southern Railway Co. is transferring $140 million in cash and property to a joint venture with Pan Am Railways to improve the 155-mile rail route from Albany, N.Y. to Ayer. The project includes $87.5 million to be spent over three years on capital improvements, including terminal expansions and track and signal upgrades. An $8 million auto distribution center is under construction in Ayer, and an intermodal terminal in town will receive improvements. The project was approved by the U.S. Surface Transportation Board in March. The cooperation between the two railroad companies means more trackage rights for Pan Am and another market for growth for Norfolk Southern. While Pan Am is privately-held and operates mostly in the northeast, Norfolk Southern Corp. is a publicly listed $16 billion company. By coming to Massachusetts it is competing with CSX Corp., which had been the only major national carrier doing business here. Plans to upgrade the tracks is welcome news to most residents and businesses along the so-called Patriot Corridor, but other parts of the project are not so popular. The town of Ayer spent 10 years in court fighting Pan Am — formerly Guilford Rail – on the construction of the auto distribution center near Spectacle Pond, which provides about 60 percent of the town's water supply. In the end, a judge ruled the railroad had a right to build there, but that it must comply with a set of environmental regulations. Concerns remain, but Shaun A. Suhoski, town administrator of Ayer, says investment in the Albany-to-Ayer route, known as the Patriot Corridor, is a good thing. “We see reinvestment in the entire Patriot Corridor as good economic development to benefit the entire Northeast,” he said. “It's important to Ayer, it is important to all of Massachusetts up to Maine.” The Pan Am Southern venture comes at a time when rail is in the national spotlight. Although railroads have been carrying freight across the country since the 19th century, much of the volume later shifted to trucks. Now public officials and advocates are pushing for more and better rail service, saying the use of trains helps ease highway congestion and is friendlier to the environment. Both passenger rail and freight rail spur economic development, advocates say. And while sharing railroad tracks can

Pan Am Railways conductor Danny Donnelly guides a line of tank cars filled with cooking oil onto a siding track to Catania-Spagna in Ayer. (T&G Staff/RICK CINCLAIR)

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be a challenge — as Worcester-to-Boston commuters see daily on the line shared with CSX — track upgrades benefit trains carrying freight as well as those carrying passengers. A freight train can take the load of 280 trucks off the road, according to the Association of American Railroads. On one gallon of fuel, a train can move a ton of freight close to four times as far as a truck could move it. Many railroad companies, including CSX and Norfolk Southern, have been marketing their “green” practices. The federal stimulus bill passed in February includes $8 billion for high-speed rail, one of President Barack Obama's favorite issues. Governors from all the New England states are seeking stimulus funds for a plan to connect major cities and airports in the region with high-speed rail. Their goal is to double passenger rail ridership in the Northeast by 2030. In Massachusetts, the administration has made improving rail transportation one of its priorities. The state is working on a comprehensive study of freight and rail transportation, with a final report due in January. “In Massachusetts we are overly reliant on the movement of freight by truck,” Lt. Gov. Timothy P. Murray said. “The irony is that rail is cheaper and more environmentally friendly, but we've neglected a lot of the infrastructure.” By 2035, freight movement on rail and roads is expected to double from existing volumes, he said. The state's rail plan will recommend how to better use existing rail assets, and how to connect rail lines to ports and airports. “We need to have an integrated transportation system,” Mr. Murray said. Because so much of the infrastructure in Massachusetts is so old, the state has to spend billions of dollars just to bring roads, bridges and railroads up to date. The state, for example, is spending $50 million to raise several road bridges that run over train tracks used by CSX, and CSX is lowering the tracks in many places, so the tracks can accommodate double-decker freight trains. According to the Association of American Railroads, freight rail traffic in Massachusetts declined from 1997 to 2006. “There's not that many people banging on the door looking to locate to Massachusetts where rail is a requirement,” said Rian J. Nemeroff, chairman of the Massachusetts Railroad Association. The state could do more to boost freight rail, he said, by applying for federal stimulus money specifically for freight rail projects, and by making sure environmental regulations don't make it harder for railroad companies to do business. A glimpse of the future of freight rail may be playing out in Ayer. “Freight rail is increasingly important in this country… for getting trucks off the road, energy conservation, traffic decongestion. ... But you've got to have service locally in order to make that happen,” said David L. McKeehan, president of the North Central Massachusetts Chamber of Commerce. “The reputation Norfolk Southern has in markets they're already operating in is that they are aggressive in looking for new business,” he continued. “I expect that they'll be more aggressive in trying to develop business along the line than Guilford and Pan Am have been.” Norfolk Southern is contributing to the venture 155 miles of track from Mechanicville, N.Y. (near Albany) to Ayer, along with 281 miles of secondary and branch lines, and trackage rights in New York, Connecticut, Massachusetts, New Hampshire and Vermont. Upgrade and construction work began in the spring. “We've had a relationship with Pan Am Railways for many years, and through that time we had been assessing ways to improve rail service into Eastern Massachusetts and Albany. It was just another evolution,” Norfolk Southern spokesman Rudy Husband said of the project.

Order the Telegram & Gazette, delivered daily to your home or office! www.telegram.com/homedelivery

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From: Dennis Coffey [mailto:DPCoffey@HNTB.com] Sent: Friday, May 16, 2008 6:21 AM To: Sandra Marchione; Williams, Steve @ NRPC; Steve Devine ; Dana Roscoe; Richard Rydant Cc: Steve Slavick; Scott Wertans Subject: FW: NS - Pan Am This is a significant event in New England – and will likely have impacts in the inter-modal markets, the FML project, and other regional topics. DC

Pan Am Railways and Norfolk Southern Create the Patriot Corridor to Improve Rail Service and Expand Capacity in New York and New England NORTH BILLERICA, MASS., NORFOLK, VA. – Pan Am Railways (PAR) and Norfolk Southern Railway Company (NS) have agreed to create an improved rail route between Albany, N.Y., and the greater Boston, Mass., area called the “Patriot Corridor.” Investments in the Patriot Corridor are expected to improve track quality and customer service, boost train speed and reliability, and increase capacity on the route. PAR and NS each will have a 50 percent interest in the newly formed railroad company, called “Pan Am Southern.”

PAR has agreed to transfer to the joint venture its 155-mile main line track that runs between Mechanicville (Albany), N.Y., and Ayer, Mass., along with 281 miles of secondary and branch lines, including trackage rights, in Connecticut, Massachusetts, New Hampshire, New York, and Vermont. NS has agreed to transfer cash and other property valued at $140 million to the joint venture, $87.5 million of which is expected to be invested within a three-year period in capital improvements on the Patriot Corridor, such as terminal expansions, track and signal upgrades. The companies also anticipate the construction of new intermodal and automotive terminals in the Albany area. PAR’s Springfield Terminal Railway subsidiary has agreed to provide all railroad services for the joint venture.

“We are excited to partner with Norfolk Southern on the Patriot Corridor. Since the Conrail transaction was implemented in 1999, both Pan Am Railways and Norfolk Southern have been working to bring additional high quality rail transportation options to our New England customer base. This joint venture is the culmination of those efforts,” said David Fink, Pan Am Railways’ president. “With energy prices continuing to rise, the Patriot Corridor will give our customers additional capacity and speed to get their products to market.”

“Norfolk Southern has been working with Pan Am Railways to improve rail service and increase transportation options between the Norfolk Southern system and the Boston area,” said Wick

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Moorman, Norfolk Southern’s chief executive officer. “The Patriot Corridor creates a new level of rail competition in upstate New York and New England by improving train speed, reliability, and capacity, as well as strengthening connections between the region’s short line and regional railroads and Norfolk Southern’s 22-state network.”

The parties will seek approval for the transaction with the U.S. Surface Transportation Board. Additional materials describing the transaction will be posted on Norfolk Southern’s Web site, www.nscorp.com, and will be furnished to the SEC as part of a Current Report on Form 8-K.

Norfolk Southern is currently improving the Heartland Corridor, a high-capacity rail route linking the Port of Virginia (Norfolk), Columbus, Ohio, and Chicago, and has announced the Crescent Corridor, an initiative to divert freight traffic from highways to rail between New Orleans, Memphis, and the Northeast.

Pan Am Railways is the Northeast’s largest regional railroad. It operates over 2,000 route miles in Maine, New Hampshire, Massachusetts, Vermont, Connecticut, New York and Atlantic Canada. Pan Am Railways interchanges traffic with fifteen railroads throughout its network.

Norfolk Southern Corporation (NYSE: NSC) is one of the nation’s premier transportation companies. Its Norfolk Southern Railway subsidiary operates approximately 21,000 route miles in 22 states and the District of Columbia, serving every major container port in the eastern United States and providing superior connections to western rail carriers. Norfolk Southern operates the most extensive intermodal network in the East and is North America’s largest rail carrier of metals and automotive products.

Any statements contained in this news release which are not related to historical facts are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties (noted in Norfolk Southern’s filings with the SEC) which could cause actual results to differ.

# # #

Pan Am Railways Contact: Cynthia Scarano, 978-663-1028, 978-423-2231 (cell), cscarano@panamrailways.com

Norfolk Southern Contacts: Media: Rudy Husband, 610-567-3377, rudy.husband@nscorp.com Investors: Leanne Marilley, 757-629-2861, leanne.marilley@nscorp.com

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Fitchburg Train Travel To Boston To Get Easier Rail line improvements could make new commutes practical

By Livia Gershon

Worcester Business Journal Staff Writer

03/30/09

When the federal government recently approved a major spending bill, the biggest Massachusetts transportation line item was $30 million for the Fitchburg commuter rail. The idea is that the funds, together with about $120 million already allocated for the rail line, will bring the travel time from Fitchburg to Porter Square in Cambridge from 90 minutes to about 68.

But once the upgrades are finished – in 2012 according to current projections – who will end up riding the rails? Will North Central Massachusetts residents tolerate spending more than two hours a day in transit? Will Boston-area workers swap the Charles River for the Nashua?

Mohammed Khan, administrator of the Montachusett Regional Transit Authority, which is in charge of the rail improvement, says he thinks it will boost commuting from Fitchburg to Boston significantly, but that’s not the only reason it’s a good idea.

Consider The Alternative

Currently, Khan said, despite the fact that the main alternative involves driving through the notoriously congested Concord Rotary area on Route 2, less than 2 percent of people going between Fitchburg and Metro Boston use the train.

A 2007 study commissioned by MART suggests some reasons that’s the case. It said the Fitchburg line was on time only 83 percent of the time in 2005, compared to 91 percent for the commuter rail system as a whole. Only five trains on the line arrive at North Station before 9 a.m.

The planned project includes track improvements to boost trains’ maximum speeds from 60 to 80 miles per hour, the installation of double tracks in some areas to help commuter and freight trains share space and other physical changes to make the ride faster and smoother.

Even before the improvements, Khan said, there are signs that at least some people are willing to make the commute to the Boston area by train. He said that just last summer ridership doubled when gas prices rose dramatically, and though it’s declined some since then it hasn’t dropped to previous levels.

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Demographic change may mean more commuting in coming years. According to the 2007 report, the population of the North Central Massachusetts communities served by the rail line was projected to grow 24 percent between 2000 and 2030.

Bargainville, MA

Kahn said Boston-area residents may be willing to trade off commuting distance for cheaper living. Traveling from Cambridge or Arlington on the bus or subway might take only half an hour he said, “but then you look into the other side—the price you have to pay for a half-million dollar property that you have to buy.”

In Fitchburg, he said, a condominium or house with much more space can be had for $250,000.

“If you go to New York or Chicago or Los Angeles, for them an hour is a good time,” Khan said, “So it’s all relative situations.”

Even if many Bostonians don’t decide to brave long commutes and a less cosmopolitan home town, Khan said a faster rail line could have benefits for people a little way down the line. The commute from the Ayer/Littleton area, where I-495 and Route 2 come together, will drop to 45 or 50 minutes, he said, and MART hopes to add a parking lot there.

Industry in North Central Massachusetts could also benefit from the faster rail line, Khan said. He said people from the biotechnology and high-tech industries and the research facilities of Greater Boston are increasingly interested in the related companies springing up in North Central, particularly in Devens.

“They would very much like to come over here and consult and then go back,” he said. “Route 2 being what Route 2 is … I think commuter rail will play an important role.”

 

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