Tuesday June 1, 6:04 am Eastern Time
Company Press Release
NYRR'S Cross Harbor Railroad Hails Norfolk Southern/CSX June 1st 'Start Date' as Beginning of Historic New Partnership with Entering Long-Haul Rails
Region's Single Rail-Freight Marine Provider Ushers in New Era of Explosive Growth and Regional Cooperation
NEW YORK--(BUSINESS WIRE)--June 1, 1999-- New York Regional Rail (OTC BB:NYRR - news) President W. Robert Bentley hailed this morning's takeover of the assets and operations of Conrail, by Norfolk Southern Corporation and CSX Transportation, as ''the greatest business opportunity that NYRR's Railroad has faced in a generation.''
''At the same time,'' he continued, ''this development represents the most tangible step forward for regional rail and intermodal expansion, that the Port of New York and New Jersey has witnessed,'' said Bentley.
New York Regional Rail Corporation (''NYRR'') is the operator of the New York Cross Harbor Railroad, ''New York & New Jersey's Direct Link to the National Rail-Freight Network,'' and the only rail-freight marine operation serving the Northeastern United States. With operations located at Jersey City's Greenville Yard, and multiple points of access on the Brooklyn waterfront, the Cross Harbor Railroad holds the only ICC Certificate of Necessity & Convenience to transport rail-cars via tug-propelled car-float (float-barge) between New York and New Jersey and throughout the Harbor.
As a result of the Norfolk Southern and CSX entrance, into this regional marketplace, NYRR's Cross Harbor will access both long-haul carriers, directly through what will be called the 'Conrail Shared Assets Organization' area (or CSAO), solidifying the NYRR/NYCH system, as New York & New Jersey's Gateway to enhanced competitive rail-freight access. The Railroad will also connect with the Canadian Pacific RR.
Shortly after the June 1998 Surface Transportation Board's (STB) approval of the NS/CSX acquisition of Conrail, NYRR's Cross Harbor Railroad signed a general ''Handling Agreement'' with the Norfolk Southern Railway (NYRR Press Release of 11/16/98), thus rapidly securing its position as the NY/NJ/LI region's 'Hub' Short-Line Railroad.
NYRR's Cross Harbor recently concluded an exclusive agreement with Norfolk Southern to move trans-load bulk freight throughout the region at a new facility to be situated within the Railroad's Bush Terminal Yard in Brooklyn, N.Y. (NSC Press Release of 5/18/99). Bush Terminal will also be the recipient of an array of general freight flows.
In summarizing his feelings on the historic meaning of this day for both NYRR's Cross Harbor Railroad, and for the entire region, Mr. Bentley said: ''I am convinced that the entrance of Norfolk Southern and CSX Transportation into this market, will mean substantially higher volumes of rail-freight cars bound for, and running through our rail system. As a result, we will benefit from significantly increased revenues, resulting from this strong growth opportunity,'' he said.
''We can also expect to see other business benefits from this entrance of regional rail-freight competition. They are: premium service for the rail-freight shipper; along with substantially lower cost structures due to increased transportation competition. Optimally efficient service will result from more rail interline cooperation, which will be a strong catalyst for regional increases in low-cost rail-freight transportation volume,'' he continued.
''I don't think we should underestimate the public benefits that will enure to this region. The result of the entrance of Norfolk Southern and CSX Transportation will produce a tangible decrease in trans-Harbor truck traffic and congestion; improved ambient air quality as a result of lower levels of harmful emissions and particulates; savings to local and state governments on larger scale capital highway and bridge infrastructure investments; and strengthened economic and industrial development, not to mention, significant job creation for both sides of the Harbor. NYRR is proud of its current and forthcoming role in achieving these public benefits,'' he concluded.
It is NYRR's Cross Harbor Railroad intent to work with the other railroads in this region, to help bring about a more balanced transportation network. Currently, regional truck freight-flows account for better than 95% of the region's overall freight movement, with just under 5%, reported for rail.
In addition to its current agreements with the Norfolk Southern Railway, the Cross Harbor Railroad has signed agreements with CSX, to handle traffic destined for New York. The Railroad has also indicated its willingness and desire to work with the Canadian Pacific Railways, in order to facilitate its freight flows entering this, the highest consuming economy in North America.
Recently, the City of New York completed its 'Ten-Year Capital Strategy,' and has earmarked nearly $900 million in capital investment resources, for long-term development of a number of commercial and industrial initiatives. Included are three areas of particular significance to NYRR's Cross Harbor Railroad. They are: Industrial, Ports, Waterfront and Market Development, which, taken together, amount to $421.6 million, or nearly half of the aforementioned investment goal.
In this program are two sites identified as providing positive impacts on future rail-service and car-floating operations along the Brooklyn Waterfront. They are: the South Brooklyn Marine Terminal, and Bush Terminal. Improvements to these key facilities will enhance operations for the Cross Harbor Railroad, which has rail rights over the trackage, extending from Brooklyn's 29th Street to 65th Street. NYRR's operating subsidiary is the only rail-freight marine operation in the Harbor. These developments will provide improved waterfront access for the NYCH expansive rail and intermodal operations.
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