Cincinnati agrees to sell rail line in $1.6 billion deal
Norfolk Southern, an Atlanta-based freight rail operator, has agreed to buy Cincinnati Southern Railway from the City of Cincinnati for $1.62 billion in cash.
Why it matters: This comes against the backdrop of a possible freight rail-workers strike, which could cripple the U.S. economy.
Details: CSR runs around 360 miles from Cincinnati to Chattanooga, Tenn., atop around 9,500 acres of land and operated under a lease agreement with a Norfolk Southern subsidiary that's set to expire in 2026.
- Deal closure is subject to approval by Cincinnati voters and the U.S. Surface Transportation Board.
- CSR trustees have said proceeds would be put into an investment trust, whose returns would fund existing infrastructure like roads, bridges and parks.
History, per WXIX: "The route was funded with a $10 million bond issue approved by Cincinnati voters in June 1869, just as the steamboat era that put Cincinnati on the map was winding down. It became a dependable cash cow for the City after its operations were leased out in 1881 to the company that would eventually become Norfolk Southern."