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Robert E. Martínez Norfolk Southern Corporation. Indiana Logistics Summit Indianapolis November 14, 2006. Markets, Transportation Markets, Market Change and Transportation Policy; and The Economics of Rail. Railroads are Highly Capital Intensive.

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robert e mart nez norfolk southern corporation

Robert E. MartínezNorfolk Southern Corporation

Indiana Logistics Summit

Indianapolis

November 14, 2006

markets transportation markets market change and transportation policy and the economics of rail
Markets, Transportation Markets, Market Change and Transportation Policy;andThe Economics of Rail
railroads are highly capital intensive
Railroads are Highly Capital Intensive

Source: JPMorgan Estimates and Company Reports.

capex revenue in industrial sectors
Capex/Revenue in Industrial Sectors

Source: JPMorgan Estimates and Company Reports.

ns principles on public private partnerships
NS Principles on Public/Private Partnerships
  • No safety degradation
  • Voluntary on both sides
  • Public sector pays for public or societal benefits
  • Norfolk Southern pays for railroad benefits
  • Benefits, costs and risks are shared proportionately
ns principles on public private partnerships cont d
NS Principles on Public/Private Partnerships (cont’d)
  • NS commits to performance standards in return for public participation
  • Planning must be coordinated among all stakeholders to ensure prudent investments
  • Planning must be executed in a manner consistent with rail regulatory requirements, ownership rights, and market conditions
  • The project must produce a more balanced transportation policy
slide15

Chicago -Ashland Ave. Hub

Harrisburg - Rutherford Hub

Atlanta-Austell Hub

Intermodal Network

33 NS Terminals

19 Private / Port Terminals

8,300 Route Miles

slide16

Hub and Spoke Network

– how it works -

(From PNW)

(From So-Cal)

(From So-Cal)

33 NS Terminals

19 Private / Port Terminals

8,300 Route Miles

slide17

Ports of Seattle

and Tacoma

Boston

Buffalo

Albany

Detroit

New York

Cleveland

Chicago

Oakland/

Richmond, CA

Philadelphia

Pittsburgh

Baltimore

Columbus

Cincinnati

Norfolk

Louisville

Los Angeles,

San Bernardino,

Ports

Charlotte

Clovis, NM

Memphis

Huntsville

Atlanta

Charleston

El Paso

Dallas

Savannah

Jacksonville

Union Pacific

Burlington Northern Santa Fe

Norfolk Southern

Kansas City Southern

Miami

Norfolk Southern IntermodalTranscon Network

slide20

Montreal

Toronto

Elizabeth Marine Terminal

Detroit

Chicago

Cleveland

Pittsburgh

Columbus

Norfolk / Ports of Hampton Roads

Kansas City

Cincinnati

St. Louis

Louisville

Charlotte

Memphis

Huntsville

Atlanta

Charleston

Savannah

Birmingham

Miami

Jacksonville

Dallas

New Orleans

East Coast Port Services

slide22

Central Corridor Double-Stack Project: The current clearance envelope through western Virginia, West Virginia and Kentucky only accommodates railcars up to 19’1” multi-levels. No double-stack cars can be accommodated due to the height, as well as the square profile of the conveyance.

slide23

Heartland Corridor

Chicago

Cleveland

Harrisburg

Columbus

Prichard

Kenova

Roanoke

The Port of Virginia

the heartland corridor

To Chicago, Detroit, & Points West

OH

Columbus

Rickenbacker

Ashville

WV

Washington, DC

Portsmouth

VA

Huntington

Kenova

Prichard

Richmond

Williamson

Welch

KY

Roanoke

Petersburg

Bluefield

Christiansburg

Portsmouth

The Heartland Corridor

664

NIT

CIMT(Proposed)

CIDMMA

Norfolk

APM

164

Portsmouth

PMT

264

664

264

464

CRMSRP Project (Median Rail)

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