News & Reviews News Wire Cincinnati Southern sale completed

Cincinnati Southern sale completed

By Trains Staff | March 18, 2024

Norfolk Southern makes $1.6 billion payment, to be invested for city infrastructure projects

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Map of rail line from Cincinnati, Ohio, to Chattanooga, Tenn.
Norfolk Southern has completed its purchase of the Cincinnati Southern Railway. City of Cincinnati

CINCINNATI — The city of Cincinnati’s sale of the Cincinnati Southern Railway to Norfolk Southern has been completed.

Paul Muething, president of the Cincinnati Southern board of trustees, said in a statement available on the railway website that the board received the $1.6 billion payment from NS, plus $20 million in deferred transaction fees, on Friday. The money will be invested through a contract with UBS Financial Services, and is projected to generate about $55 million annually — more than twice the approximately $25 million the city had received under its prior lease. By law, those funds can only be used to rehabilitate, modernize, or replace existing city infrastructure.

Voters approved the sale of the railroad last November in a closely contested election [see “Voters narrowly approve …,” Trains News Wire, Nov. 8, 2023]. The only city-owned interstate line in the U.S., the 336-mile between Cincinnati and Chattanooga, Tenn., had been leased by NS or its predecessors since 1881.

5 thoughts on “Cincinnati Southern sale completed

  1. Why would the city of Cincinnatti give up a decicated source of revenue? The lease payments from NS had to be in the hundreds of millions.

  2. Ancora probably bitching. NS should have used that money to buy back some more stock causing the value of the stock to go up.

  3. Seems like a VERY good deal for taxpayers. However, a cautionary note – don’t expect taxes to be cut. The city may reduce or “zero-out” appropriated tax-revenue sourced rehabilitation, modernization, and/or replacement funding in lieu of returns on the investment from USB. Tax revenue no longer needed for rehabilitation may be reprogrammed for other items. It’s a politician’s dream come true.

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