J.B. Hunt Transport Services Inc. of Lowell reached an agreement Thursday with Norfolk Southern Corp. of Norfolk, Va., for its intermodal operations in the eastern half of the United States.
The multi-year agreement will "provide both parties a platform to accelerate the conversion of traditional truck traffic to cost effective, environmentally friendly intermodal transportation with service that is competitive with truckload moves," the company said.
While the trucking industry has been hit hard during the recession, coupled with higher diesel prices, rail traffic has benefited because it is cheaper to ship on rail. J.B. Hunt has been moving more into intermodal operations for years and stands to boost revenue and earnings with the contract with Norfolk Southern
"Given the enormous confidence we have in the Norfolk Southern's ability to provide the best intermodal service in the Eastern half of the U.S. and the obvious commitment NSC has made by the significant investments in their corridor development, we are delighted to have the opportunity to elevate our joint services into the future," said Kirk Thompson, CEO of J.B. Hunt.
"This new agreement will provide unparalleled intermodal service and value for U.S. shippers," Thompson said. "The conversion of highway freight to the more efficient, cost effective, safer and more environmentally friendly services that we jointly provide, will not only benefit shippers and the general public, but JBHT and NSC shareholders alike."
"Our new services with J.B. Hunt will provide shared incentives to grow volume and revenues by converting substantial volumes of freight from highway to rail," said Norfolk Southern CEO Wick Moorman.
"We look forward to working with the J.B. Hunt team to offer new, high-speed, reliable, premium services to domestic intermodal customers over our entire network, including our new Crescent Corridor route, from New England, northern New Jersey and Pennsylvania south to Memphis and New Orleans. This strengthened relationship between NSC and JBHT will offer significant benefits to shippers, communities, states and the country by reducing highway congestion, fuel consumption and emissions," Moorman said.
Norfolk Southern operates approximately 21,000 route miles in 22 states and the District of Columbia, serves every major container port in the eastern United States, and provides efficient connections to other rail carriers. It operates the most extensive intermodal network in the East and is a major transporter of coal and industrial products.
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