SignValue’s Brian Shuford on Railroad Licenses

SignValue billboard development advisor Brian Shuford talked about out of home and railroad licenses at the Spring IBO show.  Here’s a summary of his comments.  To learn more about railroad licenses contact  brian@signvalue.com.

Brian Shuford, Billboard Development Advisor, SignValue

I work closely with many of you on development projects involving Norfolk Southern property, and the number one issue we often encounter with all railroads is flagging. Building on railroad property requires patience and a solid understanding of what’s involved. Railroads’ primary concern is ensuring the safety and operation of the railroad. Being prepared for the process is crucial, as it can take time.

Track Movement and Setbacks
One aspect that often comes up is the concern over setbacks, which are 25 feet from the center line of the track. If your development overhangs the track, it needs to be at least 23 feet above the track. These are federal guidelines, and while they may seem stringent, Norfolk Southern is generally open to projects as long as you meet these specifications.
30 Day Cancellation 
Another point to note is that all railroads, including Norfolk Southern, have a 30-day cancellation provision for any rail operation. While it’s rare, there are occasions when a billboard lease might interfere with the expansion of a new rail line. This is something to keep in mind when entering into long-term leases with Norfolk Southern, which can range from 10 to 20 years. Even though the terms are long, the lease can still be cancelled if railroad operations need the space, though, again, this is a rare situation.
Smaller Setbacks
One of the benefits of working with Norfolk Southern is the smaller setbacks compared to typical development on other properties. With many roadways, you need to account for sidewalks, property lines, and zoning setbacks, which can push your development 30 feet or more off the road. But with the railroad, the property line can go right up to the road—sometimes as close as a baseball throw from the road itself. This offers prime locations for billboards, as they’re closer to traffic and provide better viewing distances.
The Process
The application process for Norfolk Southern is available on SignValues website and ours. It’s straightforward but important to understand key details. For instance, depending on the height of the board, the 25-foot setback is measured from the billboard’s leading edge, not the pole’s center. This can be a common point of confusion. You’ll also need to specify the display type, size, rate, and term of the lease. The timeline for approval can vary, but Norfolk Southern typically works well with independent operators, as they’re often quicker to act on new development.
Once the location is approved, you can proceed with securing the necessary permits. Afterward, the project undergoes an engineering review, which ensures the foundation and construction meet required standards. One common issue is flagging, which can delay the process. Flagging is necessary for safety when working near the tracks, and while Norfolk Southern uses a third-party service to manage it, it can still take time to schedule.
Approval can take time
Now, shifting gears a bit: a major advantage of working with large, corporate landowners is the access to prime locations. A key challenge with these properties is navigating the sophisticated, standardized processes they require. These companies often have multiple layers of approvals, but once you’re through that, the opportunities can be substantial. We’ve worked on projects for up to 11 years, like the double-sided digital billboard in Oakland, CA. The development process can be lengthy, but the results are worth it.
Zoning Challenges
Regarding zoning issues, many railroad properties are unzoned, which creates challenges with local jurisdictions. However, we can help educate these local authorities, as railroad properties should be zoned for industrial or commercial use. If you run into trouble with zoning or permitting, let us know. We can often leverage our relationships with the railroad and their lobbyists to help clear up any issues.

For more information contact one of our experienced advisors for a confidential consultation at info@signvalue.com or call (480)657-8400.

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One Comment

  1. Take a look at Norfolk Southern’s line in your market: https://map.signvalue.com/

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