The Role of Logistics in the Southeast Why does this matter?

1. The Role of Logistics in the SoutheastWhy does this matter? Jeff Heller, Norfolk Southern Freight in the Southeast Conference March 15, 2012

2. Key Drivers for Continued Intermodal Investment • Rising demand for logistics savings from shippers and BCOs • Shifting long-term supply chain patterns • Shorter haul service (250 – 1200 mi) or (400-1930 km) • Higher quality service demands • International from both coasts • Continued, but tempered, U.S. economic growth • Increasing environmental awareness • Increasing motor carrier costs and capacity constraints

3. The Single Largest Challenge: Highway Capacity 2007 Peak Period Congestion 2040 Peak Period Projected

5. Total US Intermodal Units Originated Source: AAR

6. NS 1-81 Corridor Traffic NY/NJ Harrisburg Front Royal Norfolk Norfolk International Terminal Portsmouth APMT Terminal Newport News Marine Terminal Greensboro Memphis Charlotte Huntsville Charleston NS Intermodal Terminal North Charleston Marine Terminal Atlanta Dallas Birmingham Savannah Mason ICTF Shreveport Gateway Jacksonville NS Intermodal Terminal Talleyrand Marine Terminal New Orleans

7. Memphis Dallas NS Norfolk-Midwest and Southeast Corridors Detroit NY/NJ Chicago Cleveland Harrisburg Decatur Columbus Front Royal Kansas City Cincinnati St. Louis Norfolk Norfolk International Terminal Portsmouth APMT Terminal Newport News Marine Terminal Louisville Greensboro Huntsville Atlanta Birmingham New Orleans

8. Norfolk Southern’s Corridor Network PanAm Southern Corridor Buffalo Ayer Albany Detroit Livernois Delray Chicago 47th Street 63rd Street Landers Calumet Ashland Ave NY/NJ Croxton Erail Elizabeth Marine Terminal NYCT PNCT Taylor Toledo Cleveland Bethlehem Harrisburg/ Rutherford Pittsburgh Morrisville/Navy Yard Premier Corridor Columbus Baltimore Decatur Front Royal Heartland Corridor Cincinnati Gest Street Sharonville Kansas City St Louis Norfolk Norfolk Int’l Terminal Portsmouth Marine Terminal Newport News Marine Terminal APM Terminal Louisville Buechel Appliance Park Georgetown Greensboro Crescent Corridor Charlotte Huntsville Memphis Atlanta Austell Inman Meridian Speedway Dallas Completion Dates Premier1995 Titusville 2009 MSLLC 2011 Heartland 2011 PanAm Southern2012 Crescent Ph I 2012 Birmingham Charleston/ Marine Terminal • NS Intermodal Network • Intermodal Network • Haulage Extensions • Intermodal Terminals • On-Dock Access • Interchange Gateways • Hub / Load Centers Savannah Mason ICTF Port Wentworth Shreveport Meridian Jacksonville Titusville New Orleans Titusville Ft Lauderdale Miami

9. Panama Canal - 2014 • In preparation for the Panama Canal widening, NS will have completed: • New Columbus Terminal • The Heartland Corridor • The Meridian Speedway • The Pan-Am Southern Corridor • New Birmingham Terminal • New Memphis Terminal • Our capacity initiatives will be c will continue with a focus on enhancing network efficiency and eliminating cost

10. “Take Aways…” • Highway and Truck Capacity will become increasingly constrained in the future • Intermodal movement of International container freight will increase through East Coast Ports • Public and Private investment in rail infrastructure will be required to accommodate the growth and keep freight moving throughout the Southeast

11. Thank You