Schneider to shift eastern rail business to Norfolk Southern from CSX

Schneider National will make Norfolk Southern its primary eastern rail provider under an agreement announced Oct. 29 aimed at expanding domestic intermodal capacity and giving shippers more options to move freight across the eastern United States.

The agreement, effective in November, shifts Schneider’s NYSE: SNDR) company-owned equipment, drivers and logistics operations away from CSX (NASDAQ: CSX) and pairs it with Norfolk Southern’s 22-state intermodal network. The companies said the partnership would expand market access, increase capacity flexibility and help attract freight now moving by truck.

“As we transition our primary eastern rail provider to Norfolk Southern, we’ll expand access to key markets, increase network flexibility and create new opportunities to better serve our customers,” said Michael Baumgardt, Schneider’s executive vice president of intermodal and logistics, in a release.

The move comes as NS pursues a transcontinental merger with Union Pacific (NYSE: UNP).

This story was originally published by FreightWaves. Read the full story at FreightWaves →