NS retains for itself the rights for any power line.
The value of this property as a rail line seems minimal, as evidenced by NS leasing the rights to the track for $1/year. NS really doesn't want the railroad line but realizes that it is a valuable right of way. NYSW needs the line right now, but doesn't want to own it. Create a new entity (CNY RR) to take the liability and probably flip the railroad (but not the rights to use the right of way for communication, power, or gas lines) to some bi state agency wants to keep the tracks in place.
In a way, this is NYSW's version of Dereco. NS gets out of paying the taxes but keeps the ROW potential. NYSW gets to control the line without having to own it. CNY RR can always go bankrupt.
There are a lot of palms to be greased before any cable gets laid, but this is a very clever plan.
Question: who owns the line from PJ to Jersey City?