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Norfolk Southern (NSC) Purchases Great Lakes Reload property

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Norfolk Southern Corporation (NSC - Free Report) announced that it acquired the Great Lakes Reload (GLR) property, a pivotal step in the railroad operator’s strategy to enhance its freight transportation services. Located in Chicago, the GLR facility offers direct rail and truck-served transload and warehouse solutions, aligning with Norfolk Southern's goal to shift flexible freight to rail. Transload facilities like GLR provide tailored solutions for different cargo types.

Stefan Loeb, Norfolk Southern’s VP of first and final mile markets, emphasized the significance of transloading solutions in optimizing rail networks.

Loeb stated, "This partnership exemplifies our dedication to maximizing efficiency and flexibility for our customers. By acquiring the Great Lakes Reload facility, Norfolk Southern gains access to a unique set of end-to-end supply chain solutions, unlocking significant new business opportunities for existing and future Norfolk Southern customers while preserving the successful operations already in place."

The GLR site spans 60 acres and boasts an impressive infrastructure, including outdoor rail capacity for 175 cars, a climate-controlled warehouse covering 386,000 square feet, and multiple indoor rail spots and box car docks.

Chuck Marias, president of Great Lakes Reloading, expressed enthusiasm about the partnership, highlighting its potential to bolster Norfolk Southern's first and final mile rail traffic in the Great Lakes Terminal. GLR remains dedicated to delivering premium transloading and warehousing services to its clientele.

By acquiring GLR, Norfolk Southern not only expands its market reach but also reinforces its commitment to providing efficient and flexible transportation solutions. This strategic move underscores the company's focus on customer satisfaction and its relentless pursuit of excellence in freight transportation services.

Zacks Rank

Currently, NSC carries a Zacks Rank #3 (Hold).

Investors interested in the broader Transportation sector may consider SkyWest (SKYW - Free Report) and Air Lease (AL - Free Report) . SkyWest presently sports a Zacks Rank #1 (Strong Buy) and Air Lease carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

SkyWest's fleet modernization efforts are commendable. Upbeat air travel demand also supports the company. The Zacks Consensus Estimate for SKYW’s 2024 earnings has improved 26.3% over the past 60 days. The stock has surged 213% in the past year.

SKYW has an expected earnings growth rate of more than 100% for 2024. The company delivered a trailing four-quarter earnings surprise of 128.02%, on average. Shares of SkyWest have surged 204.4% in the past year.

AL has an encouraging record with respect to earnings surprise, having surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 20.15%. Continuous fleet growth bodes well.

Continued recovery in airline operations is driving lease demand, which bodes well for AL. The Zacks Consensus Estimate for 2024 earnings has been revised 25.8% upward over the past 60 days. The company has an expected earnings growth rate of 30% for 2024. AL shares have rallied 30% in the past year.

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