The Keystone Terminal is located just outside the city of Carlise. Both the PRR Cumberland Valley Branch and the South Penn converged at this point, and had a small yard where interchange was performed. The South Penn enlarged the yard to allow classification of of all westbound traffic. Since the Reading has trackage rights into Keystone, it's interchange work is also done here. The South Penn has a diesel shop where routine work is performed on the leased PRR locomotives.
Any major work is sent to the system shops in Altoona.
There is also a small car shop, but again any major work is handled elsewhere. The remains of the steam era roundhouse and turntable still exist, but it is likely they will be torn down and the land sold off as money get tighter. A couple industries are located just east of the yard, which keeps a yard crew busy 3 shifts a day. In addition to serving the east yard lead of the yard, the original South Penn line to Lemoyne and Harrisburg divirges from the main here. Doungraded when trackage rights into Harrisburg were obtained from the Pennsy, this line supports many industries, including the Bethlehem Steel plant down bu the Susquehanna.