Norfolk Southern’s customers advanced more than 60 industrial development projects in 2025, representing a total of $7.7 billion in capital investment for new or expanded rail‑served facilities across the company’s network. The projects span a range of industries—including metals, paper, aggregates, and automotive—underscoring the railroad’s role as a critical infrastructure provider for manufacturing, logistics, and supply‑chain expansion.
Compared with 2024, when 45 projects totaling $5.3 billion were announced, the 2025 pipeline reflects a 34% increase in both project count and investment. The growth is driven by a surge in demand for rail‑connected sites in the Southeast and Midwest, where 25 projects were announced in Tennessee, 15 in Ohio, and 10 in Michigan, among other states.
Specific examples include a new automotive parts plant in Huntsville, Alabama, and a paper mill expansion in Marquette, Michigan. These projects are expected to add roughly 1.2 million carloads annually, translating into an estimated $200 million incremental revenue over the next three years and a measurable lift in freight volumes and carrier utilization.
The pipeline’s impact extends beyond volume. Norfolk Southern’s NSites platform, which lists over 700 rail‑accessible industrial sites, is expected to see a 20% increase in site‑selection activity, reinforcing the company’s competitive advantage against Union Pacific’s 2,000‑acre Houston industrial park and the proposed UP‑NS merger. The projects also position Norfolk Southern to capture a larger share of the reindustrialization wave that is reshaping U.S. manufacturing corridors.
Executive Vice President Ed Elkins highlighted the significance of the $7.7 billion pipeline, stating, “Our customers’ investment underscores rail’s foundational—and increasingly strategic—role in U.S. supply chains.” He added that the company will focus on delivering turnkey sites and maintaining high service standards to support these new facilities.
The industrial development momentum signals resilience amid a mixed manufacturing environment, where the Purchasing Managers’ Index contracted for much of 2025 but industrial production stabilized late in the year. Norfolk Southern’s ability to attract this level of capital investment demonstrates strong demand for rail services and reinforces its competitive position in the eastern U.S. rail market, providing a tailwind for future revenue growth.
Overall, the 2025 industrial development pipeline represents a material operational milestone that will likely accelerate freight volumes, enhance revenue streams, and strengthen Norfolk Southern’s strategic foothold in key growth regions.
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