CALGARY (July 3, 2002) — Canadian Pacific Railway has granted Norfolk Southern Railway trackage rights between Sunbury, Pa., and Mechanicville, N.Y., part of a continuing joint effort by both companies to improve freight service to upstate New York, northern Pennsylvania, and New England.

“This agreement is part of our mission to build strong strategic partnerships with North American railways that deliver value to customers and shareholders alike,” Fred Green, CPR’s senior vice-president of marketing and sales, said in a statement. “The agreement is in line with CPR’s strategy to maximize the value of its network in the Northeastern U.S. by creating additional traffic density on our Delaware & Hudson (D&H) lines, which will aid in improving the financial performance of the D&H substantially.”

Norfolk Southern said the agreement will make it more competitive on routes between New England and the Midwest and Southeast, and add a new, direct route between central New York state and points south.

The agreement expands on an existing partnership between the two railways. In 1998, NS and CPR completed a $12 million US upgrade of the Sunbury Line between Sunbury and Scranton. In 2001, CPR and NS introduced a intermodal service between the Port of New York/New Jersey, Montreal, and Toronto.