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| Norfolk Southern Corporation | Volume 2, Issue 2, February 2002 |
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Inside newsbreak: February is 'African-American Railroader Month' at NS Forging our future ... together J. Paul Reason elected to NS Board Bad Buffalo weather brings out the best in railroaders African journey reaps unexpected benefits
NS Newsbreak is published monthly by Norfolk Southern's Public Relations department, Three Commercial Place, Norfolk, Va. 23510-9224.
Editor Questions and story ideas can be delivered to the editor via MEMO ID aljust, e-mail at aljust@nscorp.com, phone 757-823-5205 or fax 757-533-4874. Retirees Employees interested in new personnel appointments, recent retirements, Quality Achievement Awards, 40-year service anniversaries and archived issues of Newsbreak can be found on MEMO bulletin boards Appoints, RETIREMT, QAWARDS, 40YEARS and NEWSBRK, respectively, or on the Web here. |
February is 'African-American
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 This poster is displayed across the NS system to celebrate the contributions of African-Americans to the railroad industry. Click the image for a high-resolution version. |
Norfolk Southern recognizes the achievements of African-American railroaders this month. A number of ongoing activities and opportunities to learn more about the contributions of African-Americans to the railroad industry are taking place.
A poster, featuring NS employees of the past and present, is on display at locations across the system.
The company's Web site contains information about the celebration, and has a special section devoted to African-Americans who made significant contributions to the railroad industry.
 Mayor Paul D. Fraim issued this proclamation from the city of Norfolk to celebrate "African-American Railroader Month." Click the image for a high-resolution version. |
Numerous cities and states have issued proclamations to mark the month. They are displayed at a number of NS locations.
"We're proud of the significant contributions of African-Americans to the success of our industry and our company," said David R. Goode, chairman, president and chief executive officer.
"This is an opportunity for all of us to recognize and applaud the contributions of African-Americans to the railroad industry and to have positive dialogue about diversity and its importance to our future,"said Thomasina Valentine, manager diversity.
Valentine said NS employees can check the company's Web site at www.nscorp.com for updates on activities at various sites.
President Bush signed the Railroad Retirement Survivors' Improvement Act on Dec. 21.
The legislation provides increased benefits to retirees and their survivors, and allows retirement at age 60 with 30 years service with full benefits. It also vests employees at five years instead of 10 and eliminates the maximum provision that had previously capped some employee and spouse benefits. Here's the schedule for implementation of the bill's components as provided by the Railroad Retirement Board.
Over the next few months, Norfolk Southern employees will be hearing about a number of initiatives to help the company meet the challenges ahead.
They include:
"We believe our future success depends on our ability to utilize the best talents of all NS employees," said Tom Mullenix, vice president human resources. "These initiatives will expand the pool of qualified employees as we move forward. It will also allow our employees to take more control of their careers, no matter what they do for the company."
More information about these and other initiatives will appear in Newsbreak, in mailings to employees' homes and online through the Employee Resource Center (ERC).
 Adm. J. Paul Reason |
Adm. J. Paul Reason, USN (Ret.), president and chief operating officer of Metro Machine Corporation, has been elected a director of Norfolk Southern Corporation.
Metro Machine Corp. is a full service shipyard with locations in Norfolk, Philadelphia and Erie, Pa. The company has been conducting U.S. Navy ship repair and conversions since 1972.
Reason, a native of Washington, D.C., earned degrees from the U.S. Naval Academy in 1965 and the U.S. Naval Post Graduate School in 1970. A Vietnam veteran, he commanded a destroyer, a nuclear-powered guided missile cruiser and several battle groups. From 1977 to 1979, he served as Naval Aide to President Jimmy Carter. Following that, Reason was Commander Naval Base Seattle, Commander Naval Surface Force Atlantic Fleet, and Deputy Chief of Naval operations.
In 1996, Reason assumed duties as Commander-in-Chief of the U.S. Atlantic Fleet in Norfolk, becoming the first African-American in Naval history to achieve the rank of four-star admiral. His awards include the Distinguished Service Medal and many U.S. and international decorations. Reason retired from the Navy in 1999 and joined Metro Machine in 2000.
Reason serves on the board of directors of Amgen Inc. and Wal-Mart Stores Inc.
Mother Nature unleashed her fury on parts of western New York in the days following Christmas, burying Buffalo under 83 inches of snow.
"Luckily, the wind wasn't a factor," said Eddie Otey, division engineer, Harrisburg. "There wasn't enough snow to classify it a blizzard, if you can imagine that. It was what forecasters called a 'snow event.'"
 Buffalo employees worked round the clock to keep the railroad running. |
Though slowed, NS operations never stopped, thanks to the hard work of some 80 NS employees and four local contractors.
"Everyone did an outstanding job," said Otey. "Many gave up vacation time and worked on New Year's Day to keep the lines open."
Armed with snow blowers, front-end loaders and other equipment, crews worked shifts around the clock to clear miles of tracks, minimizing service disruption in the area.
"You can't plow seven feet of snow," said Paul Sciotti, assistant division engineer. "You have to pick it up and move it."
By Jan. 4, operations were back to near normal. Crews continued working, preparing for more snow.
"I've never seen anything like it," said Sciotti. "Bad weather just brings out the best in railroaders."
Ron Taylor wasn't sure what he was getting into when he agreed to join a Hampton Roads, Va., delegation attending the 1999 Reconciliation and Development Conference in Cotonou, Republic of Benin, on the west coast of Africa. Taylor, general superintendent at Norfolk Southern's Lambert's Point Docks, received an invitation from Benin President Mathieu Kerekou after meeting him at a Washington reception the previous year.
"I went with some trepidation, but that disappeared when we were greeted warmly by a large delegation of Benin citizens when we arrived," said Taylor.
 Ron Taylor |
That was just the beginning. What he encountered later changed his life forever.
Benin was a major hub for slave traders in previous centuries. Kerekou was interested in banishing that reputation. His country hosted the conference to foster better relations among racial groups and to apologize to the descendents of African slaves for his country's role in that trade.
Taylor and the group stayed a week. They had the opportunity to visit the "Slave Trade Route" that chronicles Benin's participation in slavery. Among the stops were a fort where captured slaves were prepared for embarkation and the auction block. Taylor also saw the place where slaves were chained together in darkness with bits in their mouths and given little to eat or drink to acclimate them to shipboard conditions. A mass grave marked the burial place for all captured slaves who died or were near death. Often, injured slaves were buried alive on top of the dead.
The last stop was the Gate of No Return. Here, slaves were taken to waiting ships to leave Africa forever. The Benin government built a shrine there that portrays slaves bound together on one side and free Africans with hands held high on the other. The message is clear. Past atrocities will not take place on this soil again. Many Africans believe the continent is cursed because of the misdeeds of the past.
"Needless to say, we were moved significantly by this experience," Taylor said. "The ride back to the hotel was a quiet one, with each of us contemplating what we had seen and were feeling."
Since returning to Norfolk, Taylor and the delegation have worked to further Benin's economic interests. "We have sought to reciprocate the hospitality and brotherhood extended to us during our many visits to Benin," he says. "We've been helping them network with businesses and services that might be interested in doing business with them."
Taylor has been working specifically with the leadership of the Benin National Railroad. He enlisted the help of Rob Martínez, vice president ports and development, to set up a meeting between President Kerekou and former U.S. Transportation Secretary Rodney Slater.
"I'm absolutely impressed with President Kerekou's deep commitment to reconciliation and to helping the people of Benin get the help needed to improve their quality of life," Taylor said. "Our goal is to help them locate resources and advise on how best to obtain them. Simply put, we're teaching them how to fish."
Taylor's experience taught him a lot about himself.
"When I saw what African slaves were subjected to before they left Africa, it made me realize that some of my strength comes from those who survived the terrible ordeal," he said. "That's a powerful legacy."
Norfolk Southern Corporation reported fourth-quarter net income of $115 million, or $0.30 per diluted share, compared with net income of $5 million, or $0.01 per diluted share, in the fourth quarter of 2000, which included a work-force reduction charge of $39 million, or $0.10 per diluted share. Fourth-quarter results include an after-tax gain of $12 million, or $0.03 per diluted share, from the sale of a real estate parcel.
For the year, net income from continuing operations was $362 million, or $0.94 per diluted share. Reported net income for the year was $375 million, or $0.97 per diluted share, which includes an after-tax gain of $13 million, or $0.03 per diluted share, related to the 1998 sale of NS' former motor carrier subsidiary, North American Van Lines, Inc. For the comparable period of 2000, income from continuing operations was $172 million, or $0.45 per diluted share, and included a work-force reduction charge of $101 million, or $0.26 per diluted share.
"I am encouraged with our progress in 2001 in light of a challenging economy that exerted considerable downward pressure on volumes throughout the year," said David R. Goode, chairman, president and chief executive officer. "The substantial improvements in income both for the quarter and the year reflect the results of our rigorous cost controls, increases in revenue yield and a continual focus on providing safe and reliable service."
In the fourth quarter, railway operating revenues were $1.53 billion, up slightly compared with the fourth quarter of 2000, despite a 1 percent or 20,600-unit decrease in carloads. For the year, railway operating revenues were $6.2 billion, up slightly compared with the same period in 2000, on 3 percent or 222,100 fewer carloads.
Coal revenues climbed 5 percent in the fourth quarter to $367 million and improved 6 percent for the year to $1.52 billion, reflecting strength in domestic utility shipments. General merchandise revenues of $871 million in the fourth quarter were unchanged compared to the same period of 2000, but declined 2 percent to $3.53 billion for the year. Merchandise volumes were down for nearly all commodity groups in both the quarter and the year due to a weak business environment that prevailed throughout the year. Intermodal revenues in the fourth quarter were $292 million, a decline of 5 percent compared to the fourth quarter of 2000. For the year, intermodal revenues of $1.12 billion were up slightly compared with 2000.
Railway operating expenses in the quarter were $1.3 billion, down 7 percent from the fourth quarter of 2000, excluding the work-force reduction charge in that period. For the year, railway operating expenses were $5.2 billion, down 4 percent from 2000, excluding the work-force reduction charges.
For the quarter, the railway operating ratio improved to 82.0 percent compared with 88.2 percent in the same period of 2000, excluding the work-force reduction charge. For the year, the operating ratio improved to 83.7 percent, compared with 87.0 percent, excluding the work-force reduction charges, during the same period of 2000.
"In 2001, we laid the foundation for additional revenue growth by moving aggressively to strengthen operations, service quality and financial performance," Goode said. "As 2002 progresses, we are well positioned to handle increased business when the economy rebounds and will continue to focus intensely on making service improvements that will enable Norfolk Southern to capitalize on its expanded network."
