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Norfolk Southern: Growth Strategies and Operational Expansion Overview

Explore Norfolk Southern's growth strategies, expansion plans, and operational enhancements in the rail and highway merchandise volume sector, including crew hiring, network development, capacity increases, locomotive and freight car additions, and innovative eCommerce solutions.

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Norfolk Southern: Growth Strategies and Operational Expansion Overview

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  1. The Growth Ahead ITAC Fall 2004San Antonio, TX Blair Hanna Mgr eCommerce

  2. Rail Highway - Merchandise Volume2003 - 2004

  3. Overall Volume (000’s)AAR Carloads weeks 1-38

  4. 2,500 Forecasted Ton-mile Growth(in billions) 65% 47% Source - AASHTO

  5. Drivers of Change and Growth • Global economic expansion • Normal US economic expansion based on population growth • Greater constraints for trucking industry • Increasing energy prices

  6. Managing Growth at Norfolk Southern

  7. Crew Hiring Plan

  8. Network Operating Plan TOP Steering Committee Add additional train service Up-to-date corporate Marketing demand forecast Operating Plan Developer (OPD) computer model analyzes train blocks & routes Opportunities to bypass yards Redesigned Thoroughbred Operating Plan(TOP)

  9. Increasing Capacity • Reopened Sevier yard at Knoxville, TN on July 27 • Completed $18 million expansion at Enola yard in Harrisburg, PA • Expanded Intermodal terminal capacity at: • Harrisburg, PA • Port Elizabeth, NJ (E-rail) • Croxton, NJ • Detroit, MI • Additional main track siding capacity at Saulsbury, TN and Sheffield and Brownsville, AL

  10. Locomotives • 90 new locomotives delivered through July 2004 • 117 new locomotives to be delivered in 4th quarterLease up to 80 locomotives for peak season • Ramped up locomotive overhaul program • 2004 retirements reduced

  11. Freight Cars • Enhanced car repair program resulting in 14% increase in scheduled car repairs over 2003 • Renewed expiring equipment leases representing 2,429 cars • Additions to NS Fleet in 2004 • 250 60-ft, plate F boxcars (new builds) • 75 pressure differential hoppers (new builds) • 400 covered coil cars • 2,000 double stack platforms and 1,000 conventional • 300 bi-levels (new builds) • Established 20 independent car-prepping contractors at strategic locations

  12. Communication • Posted and automated service alerts available at www.nscorp.com • Industry meetings, both railroad sponsored or shipper & shipper association sponsored • Direct customer contact • Customer Service Operations Center • Customer site visits

  13. Customer Service Shortline Interline Service Agreements • Executed ISA’s: • 80 (representing 40% of eligible Shortline ISA’s) • In Process ISA’s (Awaiting Final Sign-off): • 75 (representing 38% of eligible Shortline ISA’s) • Needed ISA’s: • 44 (representing 22% of eligible Shortline ISA’s)

  14. eCommerce 2004 Changes Norfolk Southern Secure Website

  15. Forecast Demand Customer Pay Order & Confirm Empty Assess Additional Charges Empty Transit Resolve Freight Claims Empty Placement Shipment Life Cycle Empty Release Release, Waybill & Manifest Loaded Placement Issue Freight Invoice Reactive Problem Resolve Origin Pull or Pick-Up Reactive Trace & ETA Loaded Transit E-Applications Tailored To Fit Your Business Needs • Bill of Lading - Car Orders - CTMS • Diversions - Freight Bills - Historical Tracking • Intermodal - Rate Inquiry - Report Wizard • Trains Inquiries - Transit Times - Trip Plans • Unit Trains - Umler - Waybills

  16. Session Starts by Customers

  17. Customers Implemented

  18. Highlighting our most efficient Applications Event Notifications

  19. Event Notification Reports • All major transportation events available • You determine what events you want to monitor • Receive a report “Only” when an event occurs

  20. Event Notification Reports • Report is sent automatically when change occurs • You determine how you want notified • fax, email, FTP • Also determine how long to run report

  21. Detailed report showing event information • Newest event reporting highlighted in yellow • ETA reports indicating change also available

  22. Diversions with a new look! Diversions and Reconsignment

  23. Automated Diversion Process • Divert a railcar • Reconsignments and Destination Turnovers • Private Empty Car Disposition

  24. Create a Diversion • Complete user friendly request screen • Look up features to ensure accuracy • Use previous Diversion to reduce impute • Same look for Diversion, Reconsignment and Empties

  25. Best feature is immediate gratification • Easy to read acknowledgment summary • Log of historical activities always available

  26. Coming Soon to accessNS Historical Transit Reports

  27. Transit Report Summary • Report consists of a Shipper or Receiver Report • Transit times on and off NS (NS in route traffic) • Bad Order effect noted

  28. Transit Report Detail • Very detailed information • Current and Previous Month • Origin/Shipper - Destination/Receiver • NS Transit and Offline when available • Hyperlink to entire movement detail

  29. Echelp@nscorp.com or 1-800-235-5551

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