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Norfolk Southern Corp. (NSC - Analyst Report) unveiled its Thoroughbred Bulk Transfer terminal in Knoxville. The $5.9 million facility is adjoining to Interstate-275 and within two miles of Interstate 40 and Interstate-75 at Tennessee Avenue.

Located near Norfolk Southern’s rail yard, the terminal has the capacity to manage dry and liquid bulk commodities such as flour, corn starch, and corn syrup, as well as aggregates including sand and cement. It is equipped with 48 car spots, specialized truck scale and is well-lit, paved and fenced.

This designed terminal – that will be controlled by RSI Leasing Inc. – has amenities that enable customers to transfer a large collection of commodities between rail cars and trucks. People without rail sidings will also receive the advantages of rail economics and high service quality.

The Knoxville TBT is not only well connected with all the local markets, but also extends services to business hubs in Kingsport, Loudon, and Morristown in East Tennessee plus Western North Carolina and Southwest Virginia.

With 31 Thoroughbred Bulk Transfer facilities in 17 states that are operated by independent contractors, Norfolk Southern has a strong network assisting in safe and easy goods transfer and distribution.

We believe that the company is favorably poised to gain from the constructive industry trends, including growth prospects in the intermodal and general merchandise businesses. Other supporting factors for the company include accelerated investments in new projects and cost-saving initiatives.

However, several headwinds such as regulatory issues and competitive pressures from other players such as CSX Corp. (CSX - Analyst Report), Canadian Pacific Railway Limited (CP - Analyst Report) and Kansas City Southern (KSU - Analyst Report) along with the downturn in coal and crop markets will likely limit the upside potential over the near term.

Norfolk Southern carries a Zacks Rank #3, implying a Hold rating.
 

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