Larger NS rail system
to enhance service,
expand market reach

Let the numbers do the talking

On June 1, 1999, NS will increase the size of the system it operates by nearly 50 percent, to approximately 21,600 miles of track.

This expanded rail network will extend NS' market reach and serve shippers in 22 states in the Southeast, East, and Midwest, as well as in the District of Columbia and the Province of Ontario, Canada.

The new seamless service made possible by the transaction will improve dramatically the flow of goods between the Northeast and the South, and between the East and West coasts.

The expanded network will include 24 classification yards and provide access to 13 seaports and seven lake ports.

In addition, NS will serve more facilities than ever before, including:

Click to enlarge A train crosses the Allegheny River on the Fort Wayne line, which is part of Conrail's main route through Pittsburgh.

• 115 bulk distribution terminals;

• 83 paper mills;

• 82 metals distribution centers;

• 73 paper distribution centers;

• 72 steel production and processing facilities;

• 65 coal mines;

• 64 lumber reload centers;

"We're preparing the infrastructure now so we can make the big picture a reality tomorrow." Don Bagley, Engineering department

• 43 intermodal terminals;

• 38 auto distribution terminals;

• 32 auto assembly plants; and

• 27 utilities.

After June 1, the larger NS rail system will connect with approximately 235 regional and short line railroads throughout the Southeast, East, and Midwest.

NS also will be a competitive presence in all major ports and markets east of the Mississippi River, linking customers to the world's economy.

NS' rail service will generate new business opportunities and economic development, which are engines of growth.

Preparing from the ground up

Don Bagley NS Chief Engineer- Line Maintenance-North, Engineering department, Atlanta, 31 years' service

Ray Rumsey NS Chief Engineer- Maintenance Services, Engineering department, Atlanta, 21 years' railroad service

Since June 1997, Don Bagley has served on a seven-person team with NS co-workers from the departments of Transportation, Maintenance, Mechanical, and Communications and Signals. "Our charge," he says, "was to get familiar with Conrail operations in our areas and prepare an operating plan."

Capacity improvement projects are under way across the expanded NS system. They include constructing sidings, track extensions, and track connections, as well as upgrading some areas to double tracks.

The Surface Transportation Board granted NS early authorization to construct three track connections to link the existing NS and parts of Conrail. Since then, work has begun on three other links determined to be critical to Day One operations.

"These six connections, plus several additional projects, are scheduled for completion prior to Day One," Bagley says. "Other improvements, as well as additional projects to increase capacity, will be ongoing."

Pursuing the opportunity to operate a portion of Conrail's routes and assets was a strategic move in NS' best interest, he says. "We're preparing the infrastructure now so we can make the big picture a reality tomorrow."

In 1998, NS spent more than $1 billion for railway capital improvements. It plans to spend $1.07 billion for capital improvements in 1999 to help ensure that NS continues to provide the highest levels of safety, service, and efficiency.

NS' projected 1999 capital spending includes some $650 million for roadway projects and approximately $390 million for equipment. Included in those amounts is approximately $300 million related to operating some of Conrail's lines.

Roadway projects include:

• rail, crosstie, and ballast programs;

• bridge programs;

• improved signaling and communications;

• new and expanded intermodal facilities; and

• track improvements, such as double-tracking and passing sidings on portions of key routes on the larger NS system.

Equipment plans include purchasing:

• 138 six-axle high-adhesion locomotives; and

• new freight cars, including multi-level automobile racks, high cubic capacity 60-foot cars for automotive parts, and covered coil cars for steel.

Ray Rumsey, who joined NS from Conrail in April 1998, says NS is committed to making the investments necessary to support safe and efficient operations and provide customers with high-quality service.

Rumsey is a resource for Bagley and others at NS. "They've been able to draw from my experience and knowledge of Conrail's territory," he says.

Rumsey's personal transition to NS has been easy. "Everyone has been extremely professional and caring about helping Conrail people become integrated into the system," he says.

"NS people have been good about tapping into our expertise and experience."

Tim Dwyer NS Vice President, Marketing Services, Marketing department, Norfolk, Va., 27 years' railroad service

New routes, new markets

The integration of Conrail's routes and NS' rail network is essential to providing customers with improved, single-system service.

Shippers and receivers will benefit from enhanced competition, new routes, and a wider array of sourcing and destination markets, says Tim Dwyer, formerly of Conrail.

NS' larger system will add or improve three service routes to link the Northeast and the Midwest:

(Click here to open map in a separate window.)

The Penn Route is the shortest rail route between New Jersey and Chicago, paralleling the Interstate 80 corridor, and it is 92% double-tracked.

The Southern Tier Route will be an important double-stack route into the New York metropolitan area market.

The Southwest Gateway Route provides direct service between the Northeast and gateways with the western railroads at Sidney, Ill.; Tolono, Ill.; and Kansas City, Mo., bypassing the busy Chicago gateway.

Four new NS routes will improve service between the Northeast and Southeast:

The Piedmont Route offers improved service and competitive mileage between the South and New York, Pennsylvania, Delaware, New Jersey, and Maryland.

The Shenandoah Route is the shortest rail link between the Southwest and the Northeast. NS expects to draw significant merchandise and intermodal freight from trucks to rail on this route.

The Mid-South Route's single-line rail service, paralleling Interstate 75, connects markets in the industrial Midwest and the rapidly growing markets of the Southeast and Southwest.

The Bridge Route connects the Southeast with upstate New York, New England, and Canada through Harrisburg, Pa.

"These new and expanded service routes will allow seamless movement of freight between Conrail routes operated by NS and the current NS system," Dwyer says. "This new network will improve equipment utilization and transit-time consistency by eliminating costly delays in transferring shipments between NS and Conrail.

"These seven new service routes are key to customers realizing benefits of this transaction, which is, after all, about growth," Dwyer continues.

"These service arteries are NS' lifelines to future growth and improved customer service."

Redesigning for growth

Bob Huffman NS Senior Assistant Vice President- Intermodal Operations, Intermodal department, Norfolk, Va., 26 years' railroad service

During 1998, NS redesigned its intermodal operations in preparation for expected growth following the Conrail transaction.

Bob Huffman, formerly of Conrail, helped reconfigure the network. "We wanted to make it easier and more reliable, while also preparing for integration with Conrail's intermodal service plan," he says.

"It's been a six-month process so far, and it'll be ongoing as we measure and monitor the new network," Huffman explains.

"This redesign will position NS for rapid, service-directed growth, while meeting customer expectations in the process."

Huffman describes the benefits of the Conrail transaction. "This transaction creates huge new growth opportunities in NS' lanes," he says. "We think NS' market share will increase as we compete with other rail carriers and over-the-highway carriers in our larger service area."

The network redesign involves the largest capital program - more than $104 million over two years - in NS intermodal history, Huffman says. "We've completed seven intermodal terminal projects and numerous clearance projects for double-stack traffic. We plan to complete seven more terminal projects in 1999."

"NS wants to be number one, and that's what brought me here. I felt the opportunity was with NS." Bob Huffman, Intermodal department

Huffman, who was with Penn Central before Conrail, says working at NS has been a "great experience."

The company is structured and focused, he says, and those are necessary components for a successful operation.

"NS wants to be number one," he says, "and that's what brought me here. I felt the opportunity was with NS."

Keeping coal on track

During 1998, NS developed CTMS (Coal Transportation Management System) to integrate coal processes and systems for the larger rail network and to create a central repository for all coal shipment information.

Other functions of CTMS include:

• Creating one permitting system for all types of coal shipments;
• Integrating with other NS and Conrail systems to monitor coal shipments; and
• Forecasting and reporting new equipment needs.

Tom Newhart NS Director- Coal Transportation, Transportation department, Atlanta, 24 years' railroad service

"This system provides NS with an integrated system with new rules and new logic," says Tom Newhart, formerly of Conrail. "CTMS will help NS grow its coal traffic with the addition of the Monongahela coalfields currently served by Conrail."

Newhart, who joined NS in February 1998, says that the development of CTMS is a multi-phase process.

"Our first duty was to put in place a common permitting system and to implement universal train symbols," he says. "Our next charge is to make this internal system available to external customers via the Internet."

CTMS will allow shippers and receivers of coal to track shipments and enter permit requests electronically.

"This system will help position NS as a leader in the industry by serving as a key information provider to coal customers and mines," Newhart says.

The larger rail network will offer single-line service between the Pocahontas coalfields in West Virginia and Virginia, and utilities and industries in the Northeast.

In addition, the larger network will permit coal to move from the Monongahela coalfields to southern markets.

"We're really excited about the market opportunities associated with this transaction," says Newhart, adding that NS will serve coal docks for lake customers at Ashtabula, Ohio, as well as at Sandusky, Ohio.

"With increased dock and port access, NS can position customers to serve markets worldwide."

This guide answers questions

During 1998, a team of NS employees worked to put together an informational guide that answers customers' common questions about how to do business with NS.

The binder is titled, "Norfolk Southern Merchandise Marketing Customer Resource Guide," and it includes seven chapters filled with names, addresses, telephone numbers, email addresses, maps, route descriptions, organizational charts, and more.

Tami Alexander NS Business Development Analyst-Distribution Services, Merchandise Marketing department, Roanoke, Va., 7 years' service

"This guide has all the information anyone might need to do business with NS," says Tami Alexander, who worked on the team that developed the plan for the book. She also coordinated data collection.

"Our sales people were getting all kinds of questions," she says. "It became apparent rather quickly that customers needed answers, and we needed a resource."

The guide, which NS began distributing in December 1998, is available to any customer who wants one.

"It's relevant for any NS customer," Alexander says, "not just those new to doing business with us."

NS is preparing similar guides for coal and intermodal customers. All guides ultimately will be available on NS' Web site.

 

Fifty-foot boxcars, which haul heavy commodities such as paper products and bricks, cross the James River at Lynchburg, Va. Click to enlarge