Norfolk Southern has filed with the U.S. Surface Transportation Board an application for regulatory approval of its proposed purchase of the Cincinnati Southern Railway from the City of Cincinnati.
The line runs between Cincinnati and Chattanooga, Tennessee, and is presently leased by NS from the city. NS and the city have agreed on a purchase price of $1.62 billion for the 338-mile line.
The sale has been approved by the City of Cincinnati and the governing board of the CSR, but still needs approval from the voters of Cincinnati. The earliest the latter could occur is this November.
The CSR route hosts about 30 NS trains a day and is a key artery for the Class 1 railroad between the Midwest and Southeast.
The lease of the CSR that NS holds will expire on Dec. 31, 2026, but has a 25-year renewal option. NS is paying the city about $25 million annually to lease the line.
The railroad and city began discussing a sale of the after their failure to agree to terms for an extension of the lease.
Cincinnati officials have said they will place the proceeds of the sale into an infrastructure fund to be known as the “Building Our Future Trust Fund.”
Officials expect that the fund will generate annual interest payment of $88 million a year. Of that amount, $56 million would go to the City, with the remainder reinvested.
The CSR board is expected to decide next month whether to put on the November ballot the question of voter approval of sale of the line to NS.