FORTUNE ® names NS most admired railroad

Norfolk Southern regained its top ranking as the nation’s most admired railroad in FORTUNE Magazine’s 2005 corporate reputations survey. The company achieved a score of 8.24 out of a possible 10, believed to be the highest score ever received by a railroad.

The survey shows how CEOs, directors and securities analysts rank companies based on eight attributes, including employee talent, use of corporate assets, social responsibility, quality of management, financial soundness, long-term investment, quality of service and innovation. NS ranked first among railroads in all those categories except innovation, where it was second.

David Goode , chairman and chief executive officer, congratulated NS employees for their commitment to making NS the safest, most customer-focused and successful transportation company in the world.

“I congratulate the entire Norfolk Southern team on being named America’s most admired railroad in FORTUNE magazine’s 2005 corporate reputations survey,” Goode said. “As we enjoy our number one status, let’s remember at all times that it is our customers, suppliers, investors and the communities we serve who make it possible. Let’s continue to devote our every effort to serving them safely and efficiently.”

Moorman elected to NS board

Charles W. Moorman, president of Norfolk Southern, was elected to NS’ board of directors, Chairman and Chief Executive Officer David R. Goode announced.

Moorman became president of NS on Oct. 1, 2004. He previously served in senior leadership positions, including senior vice president corporate planning and services, president of Thoroughbred Technology and Telecommunications, vice president information technology, and vice president personnel and labor relations. A native of Hattiesburg, Miss., and a graduate of Georgia Tech and Harvard Business School, he joined NS in 1970.

Five named to senior positions

Five Norfolk Southern people have been named to senior positions in marketing, strategic planning and operations.

Michael R. McClellan was named vice president intermodal and automotive marketing, reporting to Donald W. Seale, executive vice president sales and marketing. McClellan is responsible for marketing NS’ rail services relating to international and domestic intermodal, automobiles, parts and MODALGISTICS ®, NS’ supply chain solutions business unit. Formerly vice president intermodal marketing, McClellan joined NS in 1998.

David F. Julian was named president automotive and supply chain services, reporting to McClellan. Julian is responsible for NS’ automobile and parts services; its truckload service unit, Triple Crown Services and MODALGISTICS and Transworks supply chain services units. Formerly group vice president automotive, Julian joined NS in 1971.

David T. Lawson was named vice president industrial products, reporting to Seale. Lawson is responsible for marketing NS’ services to shippers and receivers of chemicals; metals and construction materials; paper and forest products; and agriculture, consumer products and government materials. Formerly president of MODALGISTICS, Lawson joined NS in 1988.

David A. Brown was named vice president strategic planning, reporting to Kathryn B. McQuade, executive vice president planning and chief information officer. Brown is responsible for planning associated with maximizing return on NS assets, capacity enhancement and growth strategies. Formerly general manager Northern Region, he joined NS in 1981.

Bob A. Bartle was named general manager Northern Region. He is responsible for transportation operations over Norfolk Southern’s Harrisburg, Pittsburgh and Dearborn operating divisions. Formerly assistant general manager Northern Region, Bartle joined NS in 1974.

McClellan, Julian, Lawson and Brown are based in Norfolk, while Bartle’s office is in Harrisburg, Pa.

NS celebrates the contributions of women in March

Norfolk Southern is recognizing the contributions of women to the industry and the community as it observes Women’s History Month in March. “Women making a difference” is the theme for the celebration.

“We believe that it is important to recognize the achievements of women in our company, our industry and the nation,” said Peggy Scholzen, diversity council member and labor relations officer. “Our goal is to provide information about how women make this company and this industry stronger and more competitive, and how they strengthen the communities we serve.”

A page on the company’s Web site at www.nscorp.com is devoted to activities at various work locations on the NS system. It includes information about the origin and development of Women’s History Month, profiles of NS women and others who are making a difference, a weekly quiz, and links to related sites.

WiNS, the company’s women’s network, is sponsoring speakers at various locations during the month. Employees may sign up to attend using the Employee Resource Center on the company’s Web site.

“The role of women in our company and in the transportation industry has grown tremendously, and it’s important to have an opportunity to emphasize those changing roles,” Scholzen said. “There are also many women who give much to their communities, and we’re pleased to be able to highlight their contributions.”

In addition to Scholzen, Women’s History Month team members are Pam Blakeney, assistant manager process improvement, customer service; David Cobbs, assistant vice president diversity and EEO; Sarah Corey, director strategic planning; Pam Edmonds, secretary to the assistant vice president tax; Linda Duncan, manager diversity; Allison Enedy, manager online communications; Andrea Just, manager corporate communications; Jocelyn Smith, project engineer; Karin Stamy, general attorney; and Frank Wright, design manager.

New ethanol terminal fuels growth for NS

Norfolk Southern and Motiva Enterprises LLC have opened a new high-capacity ethanol
terminal located at Motiva’s petroleum distribution terminal in Sewaren, N.J. The largest rail-served ethanol terminal in the New York Harbor area, it is strategically located to serve the New York and Connecticut markets.

“We are proud of the relationship we have developed with Motiva Enterprises,” said Tom Brugman, group vice president agriculture, fertilizer and consumer products. “Motiva brings a level of expertise in ethanol distribution that is unparalleled in the industry. In 2004, NS safely and efficiently delivered more than 160 million gallons of ethanol to the Sewaren terminal. With the expansion, this volume will increase significantly, making this terminal location the primary distribution center for ethanol in the Northeast and a key component of Norfolk Southern’s ethanol marketing strategies.”

New markets in the Northeast contributed to a 59 percent increase in ethanol shipments for NS in 2004.

The facility, which replaces Motiva’s 23-car-per-day terminal, is capable of unloading 40 railcars per day. The expansion more than doubled the terminal’s capacity to more than 2 million gallons per day. Ethanol is being used increasingly as a cost-effective octane enhancer for gasoline and as a clean-burning replacement for MTBE (methyl tertiary butyl ether). A recent ban on MBTE by New York and Connecticut has made ethanol an especially critical commodity in the region.

Norfolk Southern’s agriculture, fertilizer and consumer products marketing group, working with transportation, industrial development and other departments, led the railroad’s business effort to promote the Sewaren project. Contributing to the effort, MODALGISTICS® Supply Chain Solutions, a business group of Norfolk Southern, collaboratively worked with Motiva to facilitate the development of network visibility tools that aid the Sewaren staff in more effective labor, equipment and inventory planning.

Other aspects of the expansion include streamlined logistics to eliminate local bottlenecks, improved transit and turnaround times, improved safety and security and improved tracking technology.

Dan Grinstead, director of business development for Motiva, said, “Motiva Distribution has developed a safe, efficient and reliable logistics infrastructure system at the Sewaren plant to serve the needs of our customers. These accomplishments are attributable to the efforts of our people at Sewaren, the cooperation of the railroads and, most importantly, the relationship that we share with our customers.”

WiNS adds members to Leadership Council

Norfolk Southern’s women’s network, WiNS, has added four of its members to its Leadership Council. They are Wanda Combs, manager administration, Harrisburg, Pa.; Jocelyn Smith, project engineer, Atlanta; Laura Hoag, labor relations officer, Norfolk; and Diane Voss, manager corporate accounts, Roanoke. The council is comprised of women who demonstrate strong leadership skills and abilities.

“These members are enthusiastic about the network and have served on one or on several committees,” said Lisa Wilson, business account analyst, IT, and 2005 council chair. “We selected members who are real committee contributors who display a keen interest in the network and what it is trying to achieve for NS. We were fortunate to have many more members to select from than slots open on the council.”

The new members welcome the opportunity.

“This is a wonderful opportunity to provide leadership, support and empowerment to others in similar positions,” Combs said. She has been an NS employee for 26 years and is excited about joining the council. “I look forward to working with everyone on the Leadership Council.”

Smith agrees. “Leadership presents the opportunity to motivate others to do their best,” she said. “It is great to see this from women, who are very important to the company. Also, WiNS is open to both women and men, which is vital to the diversity of the network and the company.”

The new members accentuate WiNS’ effort to both expand as an organization within NS and to supply the company with members who excel in leadership positions.

“WiNS will help NS face future challenges by improving the leadership and management skills of NS employees,” Hoag said. “WiNS promotes synergy within the NS corporate family by providing employees opportunities to network with each other through a variety of programs and activities.”

WiNS is open to all nonagreement employees. During the past year, the events committee led by Stacia Minton, director RACS, developed leadership seminars, luncheons and networking opportunities, many of which included guest speakers, such as Roseann Runte, president of Old Dominion University and NS President Wick Moorman.

“Due to the size and complexity of NS, employees can become very functionally focused. WiNS facilitates cross-functional awareness and training, which provides for the development of employees who are more well-rounded and informed about corporate challenges and problem-solving strategies,” Voss said.

The network raised money for residents affected by the Graniteville, S.C., incident. Wilson, a South Carolina native, coordinated the effort that raised $6,080 for four agencies: Salvation Army; Red Cross, Aiken, S.C.; Red Cross, Augusta, Ga; and Red Cross, Central, S.C.

“When I heard of the incident, I felt a personal connection, because my parents live an hour-and-a-half away,” Wilson said. “I sent e-mails to the Leadership Council and executive sponsors asking if they would support the idea of making donations to residents affected by the incident. When they approved, I sent e-mails to WiNS members and nonmembers, and the response was wonderful. I just received a letter of thanks from the Aiken Red Cross, and they will be sending thank-you letters to all who contributed.”

“WiNS is a resource that represents a part of NS’ social culture that might otherwise be missed,” Voss said.

“This network encourages employee development and retention, two important keys for maintaining an exceptional work force for NS,” said Hoag. “I am very proud of this appointment.”

WiNS leadership

Executive sponsors: Debbie Butler, vice president customer service; Cindy Earhart, vice president IT; Tom Mullenix, vice president human resources; Kathryn McQuade, executive vice president corporate planning and chief information officer; and Marta Stewart, vice president and controller.

Leadership council: Rita Bell, manager accounting; Jordan Bertrand, product manager chemicals; Lynnanne Catron, director expenditure accounting; Wanda Combs, manager administration, Harrisburg Division; Laura Hoag, labor relations officer; Sharon London, manager forecasting and business development, coal; Leanne D. Marilley, director investor relations; Stacia Minton, director RACS; Robin Pearson, senior labor relations officer; Sue Price, general superintendent of operations, locomotive; Karin Stamy, general attorney; Lori Shinney, group manager General Motors; Jocelyn Smith, project engineer, construction; Paula Stiffler, assistant locomotive shop manager, Chattanooga; Diane Voss, manager corporate accounting; and Lisa Wilson, business analyst, IT

NS, BLET, UTU address work-rest issues for T&E employees

General chairmen from the Brotherhood of Locomotive Engineers and Trainmen and the United Transportation Union are working with Norfolk Southern transportation and labor relations representatives to address work-rest issues for train and engine service employees.

NS train crews operate safely in a 24-hour-a-day, seven-day-a-week environment. This presents a number of work-rest issues. To meet these challenges, NS, BLET and the UTU formed a work-rest committee in 1999 to work together to find the best solutions.

“It’s vitally important to safety and service that our T&E employees have adequate rest,” said Wayne Mason, general manager Eastern Region. “It is especially important with the implementation of our Thoroughbred Operating Plan and significant increases in all lines of business.”

Prior to the committee’s formation, a number of initiatives were implemented to help T&E employees deal with the unique requirements of a 24/7 operation. NS engaged in lifestyle training efforts to help employees and their families understand the challenges of T&E work. Among the issues addressed were diet, rest, family life and obligations.

The committee has developed a number of initiatives, including assigned rest days, additional undisturbed rest at home, the creation of pools to help employees better schedule work and rest, improved lodging at away-from-home terminals, and better reliability of taxi services. The committee also is experimenting with a change in mark-up times from 11:59 p.m. or midnight to between 5 and 7 a.m., to allow train and engine employees to get “anchor rest” following rest days.

All of these initiatives help establish regular work schedules that provide an enhanced work environment.

Several traditional first-in, first-out pool operations have been restructured to assigned jobs with specific starting times so employees in this service are no longer subject to call.

“With TOP, we really have an opportunity to create a lot of assignments where employees can simply show up for work at a specific time with no more sitting by the phone waiting for a call,” said Bob Bartle, general manager Northern Region.

“The best way to address work-rest issues is through the work-rest committee. We have made significant progress, but we still have a way to go,” said UTU General Chairman Delbert Strunk, one of the original members of the committee.

BLET General Chairman Willard Knight said, “We have a common goal, and this is the perfect forum for addressing work-rest issues that spill over into quality of life issues.”

“When we began this effort, our committee consisted of two representatives from the BLET - two from the UTU and four from NS. Now our committee includes all general chairmen and the three general managers, and we have an environment where we can bring all opinions and ideas to the table,” said Jeremy Moore, NS assistant director labor relations.

Duty. Honor. Country.

Machinist cited for bravery after Mosul bombing

Norfolk Southern Machinist Ricky Warren was decorated for heroism after a suicide bomb exploded in a mess hall in Mosul, Iraq. Warren is serving with the Richmond-based 276th Engineer Battalion of the Virginia National Guard.

He thought the blast came from a mortar round and was waiting for another one to come.

When he realized what happened, he helped move wounded and dead soldiers and civilian contractors from the blast area. “It’s hard to get the pictures out of my mind. I try to stay strong for the guys,” he said. “For the first two nights, it was hard to sleep. I got absorbed in my work, and that’s how I dealt with it.”

Warren received an award from Army Chief of Staff Gen. Peter Schoomaker for his acts of heroism.