UPDATE 1-JB Hunt signs intermodal deal with Norfolk Southern
Nov 5 (Reuters) - J.B. Hunt Transport Services (JBHT.O) said it has reached an agreement with railroad Norfolk Southern Corp (NSC.N) for its eastern intermodal operations.
The multi-year contract will provide both companies a platform to accelerate the conversion of traditional truck traffic to intermodal transportation with service that is competitive with truckload moves, JB Hunt said in a statement following its investor day in Chicago.
Analysts told Reuters last month that JB Hunt was close to signing an exclusive intermodal deal with Norfolk Southern to transport freight through its rail networks. [ID:nBNG530113]
Analysts believe the deal would reduce transportation costs and mitigate pricing pressure for JB Hunt. Some believe that CSX Corp (CSX.N) had also bid for the deal.
Shares of JB Hunt were trading up 2 percent at $32.08 Thursday afternoon on Nasdaq, while those of Norfolk Southern were up 2 percent at $50.94 on the New York Stock Exchange. (Reporting by A.Ananthalakshmi in Bangalore; Editing by Anne Pallivathuckal) ((ananthalakshmi.as@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: ananthalakshmi.as.reuters.com@reuters.net))
