Norfolk Southern, Union Pacific Launch New Service
Norfolk Southern’s new domestic interline service with Union Pacific, which connects Louisville, Kentucky, to key western and southern cities, “is now shipping for anchor customers including GE Appliances” (Freight Waves).
What’s going on: “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.”
- The new service will be used by customers from many sectors, including manufacturing, automotive, food and beverage, consumer goods and health care.
Why Kentucky? The Bluegrass state, which “offers direct access to major highways, rail lines and inland ports, along with ample skilled labor,” is a top consumer goods producer.
- GE Appliance’s global headquarters and five major manufacturing facilities are in Louisville. The company recently announced an investment of $490 million to reshore washing-machine production in Kentucky, which will create 800 new full-time jobs.
Moving forward: Union Pacific announced in July that it would acquire Norfolk Southern “in [a] historic deal that would create the first coast-to-coast transcontinental freight railroad.”
- The railroads could submit their formal merger application to the federal government as soon as this month.
The last word: The new service will allow customers “to compete and expand into new markets,” said Union Pacific Executive Vice President of Marketing and Sales Kenny Rocker.
- It “gives them a critical transportation tool to win, providing reliable access to western and southern markets.”