Delaware Otsego Corporation - Stillborn Kingston Terminal and Acquisition of Susquehanna

Stillborn Kingston Terminal and Acquisition of Susquehanna

In 1980, DO formed the Kingston Terminal Railroad (KTER) to operate the east end of the former NYC Catskill Mountain Branch between Kingston, New York, and Rondout. Customers never materialized and the operation never turned a wheel. Later that year, the state of New Jersey approached Walter Rich and asked him to take over operation of the nearly-dead New York, Susquehanna and Western Railroad (NYSW). A year later, Conrail petitioned to abandon the former EL branches from Binghamton to Syracuse and Utica. DO acquired these lines and organized them as the Northern Division of the NYS&W. Soon after, portions of the former Lehigh and Hudson River Railway between Warwick, New York, and Sparta Jct., New Jersey, were purchased, and the western end of the NYSW was re-opened. Trackage rights over Conrail from Warwick to Binghamton were secured, creating a new through route from Syracuse to the New Jersey terminal waterfront at Little Ferry. The CNYK was integrated into the Northern Division at this time. The railroad was aggressively marketed as an alternative through route to New York City markets, operating lucrative intermodal double-stack trains starting in 1986. The NYSW quickly grew to become the flagship of DO.

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