Norfolk Southern and the Commonwealth of Pennsylvania have partnered to build the railroad’s Philadelphia Navy Yard intermodal facility for the high-speed intermodal freight rail route between the Gulf Coast and the north-east.

The proposed $11m project, part of the Norfolk Southern’s multistate Crescent Corridor initiative, will be funded by $6m from Norfolk Southern and $5m from Pennsylvania.

The facility is expected to handle more than 72,000 containers and trailers annually.

Governor Edward G Rendell said the Philadelphia Navy Yard intermodal facility will serve Pennsylvania, New Jersey and Delaware, creating jobs, generating revenue and helping reduce highway congestion.

Mayor Michael Nutter said that with this $11m investment, Norfolk Southern’s intermodal terminal at the Navy Yard would benefit shippers and consumers in the city and lead to further economic development opportunities in the Philadelphia area.