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The Growth Ahead

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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