NorFolk Sourthern New Locomotive from GoRail - Analyst Blog

One of the leading rail-based freight carriers, Norfolk Southern Corporation NSC in collaboration with a non-profit organization, GoRail has unveiled a new locomotive on the occasion of the tenth anniversary of the latter. GoRail creates public awareness on the benefits of moving more freight by rail.

The organization will make its commercial debut in regular freight service through Norfolk Southern's network. We believe Norfolk Southern's association with such an organization will support its target of increasing intermodal market penetration and boost its infrastructure with the addition of new and innovative locomotive to its existing fleet. 

Apart from product and service launches, we appreciate Norfolk Southern's focus on building numerous intermodal terminals including Heartland Corridor, Patriot Corridor, Meridian Speedway, MidAmerica Corridor and Crescent Corridor to expand its existing network of routes.

Looking ahead, the opening up of these new terminals is expected to bring additional businessand also offer competitive advantage over the likes of CSX Corp. CSX  and Kansas City Southern KSU. The completion of the Panama Canal and expansion of intermodal facility at Rutherford by 2014, along with the ongoing project at the West Coast ports will help to gain market share of international container traffic from the West to the East.

Norfolk Southern also unveiled its Thoroughbred Bulk Transfer terminal in Knoxville. Not only is this unit well connected with all the local markets, it also extends services to business hubs in Kingsport, Loudon, and Morristown in East Tennessee plus Western North Carolina and Southwest Virginia. We believe these long-term infrastructural developments will foster the company's expansion plans.

Norfolk Southern currently has a Zacks Rank #3 (Hold).

Other Stocks

While we remain sidelined on Norfolk Southern, Zacks Rank #2 (Buy) Union Pacific Corp. UNP is presently a good investment option.