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New Union Pacific and Norfolk Southern Intermodal Gateway Expands Market Access

1. NSC and UNP launch new intermodal service for greater market reach. 2. Service targets automotive, consumer goods, and healthcare industries. 3. Investment in infrastructure enhances capacity and reduces transit times. 4. Service expected to begin mid-October with reliable freight options. 5. Focus on sustainable transportation by reducing trucking on highways.

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FAQ

Why Bullish?

This service expansion enhances NSC's operational capacity and market competitiveness, likely boosting revenues. Historical expansions in intermodal services have correlated with positive stock performance due to increased efficiency and customer satisfaction.

How important is it?

The article discusses a significant operational development that directly involves NSC. Increased service capabilities and market reach can lead to substantial revenue growth, making it highly relevant for investors.

Why Short Term?

The initiation of the service in mid-October promises immediate benefits like enhanced customer service and revenue generation. Market reactions to service expansions typically manifest quickly, as observed during similar launches in the past.

Related Companies

Innovative service increases supply chain options for customers between Louisville and key Western and Southern markets, /PRNewswire/ -- Union Pacific Corporation (NYSE: UNP) and Norfolk Southern Corporation (NYSE: NSC) are launching a new domestic intermodal service to deliver greater market reach and more efficient freight transportation options. The service leverages Union Pacific's premier network to connect customers with key western and southern markets and Norfolk Southern's modernized intermodal facilities in the Louisville area. Why it matters: This joint service, expected to begin in mid-October, offers customers across industries — automotive, consumer goods, food and beverage, healthcare and manufacturing — truck-competitive transit times and expanded market reach. How it works: This bi-directional service will originate and terminate in the Louisville market, interchanging between Norfolk Southern and Union Pacific in Kansas City. It will travel by rail to and from: Los Angeles Lathrop, California Seattle Portland, Oregon Salt Lake City Houston This is another example of Union Pacific and Norfolk Southern developing innovative interline service products, just as each has with other short line and Class I rail partners in the past, to support the growth of the American economy. Other products include moving freight from Los Angeles to Charlotte, North Carolina, and Jacksonville, Florida.Rail infrastructure powering the launch: Strategic investments from Union Pacific and Norfolk Southern make the new service possible.Union Pacific: The new Kansas City Intermodal Terminal (KCIT) provides a critical interchange point, connecting domestic and international shipments of grains, consumer goods, refrigerated products and auto parts in the growing Midwest region to major markets across the United States. Recent changes to Union Pacific's network operations allow domestic containers to move 25% faster, saving up to 25 hours of transit time to and from Southern California to KCIT. Union Pacific has invested $1.4 billion in its intermodal products, opening four new terminals and modernizing 12 others since 2021 to proactively support market demand and compete with trucks. Norfolk Southern: Norfolk Southern is strengthening its long-standing presence in Louisville — historically focused on international intermodal — by modifying its terminal footprint to expand parking and track capacity, enabling service tailored to the domestic market's growing needs. Operating the most extensive intermodal network in the eastern U.S., Norfolk Southern has 54 terminals and connections to every major container port on the Atlantic coast, as well as major ports along the Gulf Coast and Great Lakes. Norfolk Southern continues to modernize its intermodal franchise through strategic investments in terminal infrastructure, advanced technologies, and customer-focused tools and processes. What they're saying:"Our customers want easier, more reliable freight solutions that they can depend on, and our robust service delivers that," said Kenny Rocker, Executive Vice President – Marketing and Sales at Union Pacific. "Enhancements to the newly expanded Kansas City Intermodal Terminal and Norfolk Southern investments in Louisville allow us to compete with trucks, removing thousands from the nation's congested highways.""Our enhancements in the Louisville market reflect how intently we listen to our customers and translate their feedback into thoughtful planning and strategic infrastructure investments," said Ed Elkins, Chief Commercial Officer at Norfolk Southern. "This is a growth area for our customers, so we are stepping up with service to help them reach untapped markets with a more reliable, sustainable alternative to trucking."About Norfolk SouthernSince 1827, Norfolk Southern Corporation (NYSE: NSC) and its predecessor companies have safely moved the goods and materials that drive the U.S. economy. Today, it operates a 22-state freight transportation network. Committed to furthering sustainability, Norfolk Southern helps its customers avoid approximately 15 million tons of yearly carbon emissions by shipping via rail. Its dedicated team members deliver approximately 7 million carloads annually, from agriculture to consumer goods. Norfolk Southern also has the most extensive intermodal network in the eastern U.S. It serves a majority of the country's population and manufacturing base, with connections to every major container port on the Atlantic coast as well as major ports across the Gulf Coast and Great Lakes. Learn more by visiting www.NorfolkSouthern.comAbout Union PacificUnion Pacific (NYSE: UNP) delivers the goods families and businesses use every day with safe, reliable, and efficient service. Operating in 23 western states, the company connects its customers and communities to the global economy. Trains are the most environmentally responsible way to move freight, helping Union Pacific protect future generations. More information about Union Pacific is available at www.up.com.SOURCE Norfolk Southern Corporation WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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