City Finalizes Purchase of O-Line Railroad from Norfolk Southern
Published on September 09, 2024
Current O-Line tracks via Iredell Economic Development Corp.
CHARLOTTE, N.C. (Sept. 9, 2024) — The City of Charlotte has completed the purchase of the O-Line from railroad operator Norfolk Southern Corporation. The purchase, which was finalized today, culminates city leaders’ discussions with Norfolk Southern and plans that have been in the making for several months for the Charlotte Area Transit System (CATS) Red Line Commuter Rail Project.
Last week, Charlotte City Council voted 10-1 to approve the purchase of approximately 22 miles of the O-Line railroad right-of-way, track improvements, and property rights for $74M. Council also approved the purchase of approximately 1.6 acres of property and any associated property rights located near the Charlotte Gateway Station for $17 million.
“Council’s vote marks a historic milestone as we secure the O-Line for future commuter rail,” said Mayor Vi Lyles. “This is a pivotal moment for our city, reflecting our commitment to creating a robust and efficient transportation network for all of our region. I greatly appreciate all of our elected leaders who have worked to make this finally come to fruition.”
“Throughout this process, we have been committed to balancing the needs of our network, our customers, and the interests of the communities we serve,” said Norfolk Southern SVP & Chief Strategy Officer Mike McClellan. “This transaction represents a unique opportunity to leverage an existing rail corridor to connect communities in the region like never before, and reaching this agreement is a testament to the partnership and collaboration between the City of Charlotte and Norfolk Southern.”
The Red Line is a component of the Metropolitan Transit Commission’s 2030 Transit System Plan as well as the Charlotte Regional Transportation Planning Organization’s Comprehensive Transportation Plan, providing a regional connection between Uptown Charlotte and the northern towns in Mecklenburg County.
"We have been working on this for a long time, and this is a significant moment not just for Charlotte but for our region,” said Charlotte City Council District 7 Representative Ed Driggs, who is the chair of council’s Transportation, Planning and Development Committee. “I look forward to continuing to work with our partners in Mecklenburg County on building a more connected transportation future for our region.”
The commuter rail service will provide up to 42 one-way trips per day. The rail agreement includes terms that allow Norfolk Southern to continue its existing freight service operations. The agreement between the city and Norfolk Southern includes an option for potential expansion of the right-of-way into Iredell County and Mooresville, should those jurisdictions allow expansion.
“I greatly appreciate everyone who worked on making this a reality, including city council, city staff, and the leadership of Norfolk Southern,” said Charlotte City Manager Marcus Jones. “Completing this transaction is an important step for our regional mobility aspirations and I am excited that Charlotte was able to deliver this to our community and our region. I look forward to the next steps and what we can accomplish together.”
Charlotte City Council also adopted a resolution in support of legislation that would authorize a sales tax referendum. If the General Assembly passes the legislation, Mecklenburg County voters could decide by referendum whether they will approve an additional one cent sales tax for investment in roadway and public transportation systems. The proposed sales tax increase would also allow the region to leverage federal grant funding for investment in transportation infrastructure, which would require a local funding percentage match to utilize.
Additional details about the Red Line, sales tax referendum and Charlotte's Strategic Mobility Plan are available online. Visit the webpage.