2 railroad freight companies combine effort

May 15, 2008

BILLERICA, Mass. --Two railroad companies are combining efforts to expand freight capacity and improve service between Albany, N.Y. and Boston.

Billerica-based Pan Am Railways and Norfolk Southern Railway Co. of Norfolk, Va., on Thursday announced the creation of the Patriot Corridor, which also is expected to improve track quality, boost train speed and reliability.

Each company will have a 50 percent interest in the new company, called Pan Am Southern.

Pam Am will transfer its 155-mile main line track between Mechanicville, N.Y., and Ayer, along with 281 miles of secondary and branch lines in New England and New York to the venture. Norfolk Southern will transfer cash and other property valued at $140 million to the venture.

The project needs approval from the U.S. Surface Transportation Board.