MODALGISTICS® solutions drive new business

Norfolk Southern is gaining a greater share of the growing heavy machinery transportation market, thanks to improved operating efficiencies and the planning and management capabilities of MODALGISTICS®.

Equipment manufacturers such as John Deere, Caterpillar and Case New Holland are using NS' MACH-One Machinery Service^SM to move heavy equipment from Midwestern plants to eastern ports.

High-value construction and agriculture machines, including excavators, bulldozers, combines, tractors and cotton-pickers, are being exported to Bosnia, Romania, Turkmenistan and possibly Iraq to assist in rebuilding efforts. But it isn't all about exporting.

"We are creating opportunities to handle imports and domestic equipment distribution," said Rob Robinson, director of MODALGISTICS' machinery, government and distribution services. "Our consistent service is fueling the Mach-One initiative."

Studies estimate the U.S. machinery market to be about $60 billion, and the overwhelming majority moves by truck. "Rail has previously handled only 1 percent of this market," said Tim Mann, manager business solutions. "We expect business to double in this segment of our machinery business in 2004."

"Having a greater understanding of supply chain management has helped us gain a better understanding of our customers and how to do business with them," Robinson said. "Thanks in large part to our service, we are finding ways to introduce rail as a viable mode in their supply chains, and they're beginning to take notice."

NS is moving the machinery in unit trains and on flat cars and is working with western partners Union Pacific and Burlington Northern Santa Fe to transport the expensive equipment. One recent unit train with 77 carloads of combines was valued at $69 million.

"Our team approach, represented by 10 NS departments, greatly enhances our ability to service these customers," said Steve Blinn, MODALGISTICS' national account manager government and machinery. "There is tremendous growth potential, and we are positioned to handle it."

John Deere equipment moves to an East Coast port from the Midwest.

NS joins U.S. Customs security program

U.S. Customs and Border Protection has recognized Norfolk Southern Railway Company as a certified member of the Customs-Trade Partnership Against Terrorism, a voluntary government-business initiative to improve supply chain and border security.

Through C-TPAT, NS and other rail, air and sea carriers confirm the secure handling of import and export freight while in their hands, share best practices and communicate security guidelines to their customers and transportation partners.

NS has worked with other railroads and the Association of American Railroads to enhance security in the U.S. rail system since Sept. 11, 2001.

"C-TPAT complements our ongoing efforts to ensure safe, reliable rail service," said Robert E. Martínez, NS vice president business development. "C-TPAT should help create an increasingly secure and efficient U.S. supply chain."

"C-TPAT helps reinforce the security of the supply chain from origin to destination. As various transportation companies receive freight from other companies, they know that certain security standards should have been met by the previous carrier," said Steve Hanes, director of NS police and NS' C-TPAT point of contact.

"The commitment of NS and its employees to safety and security every day has helped us earn our certification for C-TPAT. That's something of which we can all be very proud," Hanes said.

NS strategies fuel growth in the Northeast

Increased demand for ethanol in the Northeast has brought opportunity to increase market share for Norfolk Southern's agriculture products group.

Earlier this year, New York and Connecticut banned MTBE, a petroleum-based gasoline additive found harmful to the environment. This significantly increased the demand for ethanol, a corn-based additive, which is considered the best alternative to MTBE. NS seized the opportunity to establish direct rail service for ethanol from the Midwest to the Northeast.

"Our role is to be the pipeline from ethanol producers in the Midwest to terminals in the Northeast," said Tom Landrum, national account manager, sweeteners and ethanol.

"While we didn't have an opportunity to reach California, we watched the West Coast network unfold for a year," said Landrum. "By observing that market develop, we were able to formulate our strategy to serve the Northeast."

Working with NS' industrial development department, they worked through the challenges of dense development in the greater New York area and competition for resources in the Northeast needed to transport a high volume of ethanol. Much of the ethanol shipped east arrives by barge.

Strategic alliances were essential to the program's success. NS allied itself with Motiva Enterprises LLC, a refining operation owned by Shell Oil Co. and affiliates, which has several large New York harbor oil products terminals.

"Our marketing strategy was to locate a terminal with direct access to water and storage capacity to run a high volume program," said Landrum. "Our relationship allows Motiva to make a significant capital improvement to its terminal in Sewaren, N.J., which is well positioned in the New York harbor."

A major goal of this project is to optimize the use of the Shared Assets Area franchise.

"We are seeing more traffic bound for the New York metropolitan area, and Shared Assets puts NS on the waterfront," said Tom Washbon, manager industrial development. "Ethanol represents an enormous market that is not going to go away."

Proposed improvements to the Sewaren facility will allow the unloading of up to 80 cars of ethanol each day. So far this year, NS has delivered more than 30 million gallons of ethanol to the terminal.

"We're moving it quickly as well," said Landrum. "Suppliers are eager to convert to our rail program, because we consistently reach the New Jersey terminal from the Midwest in five and a half days. Once the project is complete and unit trains are put into this service, our customers will see significant reductions of current transit times."

NS has a sophisticated ethanol network that has been in place for years in the Midwest, and Landrum is optimistic about ethanol's future. "We expect additional markets to open up in the Southeast," he said. "We are actively pursuing those opportunities. It's exciting to work in an emerging market."

NS employee "refused defeat again and again"

An Atlanta employee's journey to the 2003 World Powerlifting Championships is an inspiring story of perseverance. Robert Lovelace, director mixing centers and automotive support, set a masters world dead lift record of 507 pounds for his 181-pound weight class.

Lovelace, 53, started weight lifting in high school and entered his first state meet while at college in Virginia. He came in last place but was not about to give up. The next year, he won first place in the Virginia State Powerlifting Championships. "I had that much determination," he said.

After college, he joined Norfolk and Western Railway and stopped competing because of his duties with the railroad. Then, in 1987, Lovelace was injured in a car accident when another driver crossed a double yellow line on a two-lane road and hit him head-on.

His injuries were so severe that his doctor said there was a strong chance he would be a quadriplegic. "My wife took one look at me after the surgery and started crying," said Lovelace. "I told her then that my goal was to be the strongest man in the world for my age and weight."

After successful surgery to prevent paralysis, his doctors ordered Lovelace to swim or lift weights to rehabilitate. "I chose to lift weights and haven't stopped since," he said. Less than a year after the accident, he returned to the Virginia State Powerlifting Championships and placed first in the masters division.

Lovelace continued to work toward his goal, balancing his dream with his duties at NS. "I refused defeat again and again," he said. In his first national competition in 1991, he took last place. Within five years, Lovelace placed first in the nation.

Last year, he took first in the World Powerlifting Championships in Georgia despite a competitor who broke the previous world record minutes before Lovelace stepped up to the bar.

He now holds two world records and two American records and 37 state records. Lovelace is a licensed powerlifting referee. He also has donated his time to coach young people and a police and firefighter weight lifting team that competes nationally.

Safe work habits bring injury-free streaks

In Altoona, Pa., train and engine service employees have worked more than 1,155 days without a reportable injury.

"We have 189 T&E people, five operators, five yardmasters and one clerk totaling 198 people -- safe people that is," said Jim Tubbs, trainmaster. "We have terrain and weather factors to deal with, and this is testimony to the commitment of everyone to work safely every day."

Transportation employees of the Philadelphia Consolidated Terminal have worked nearly 1,000 days without a reportable injury, further validating the Harrisburg Division's recognition as "Best transportation terminal - group 1" at Norfolk Southern's annual safety awards meeting in March.

"When everyone works together and looks out for each other, we have these kinds of positive results," said Todd Reynolds, terminal superintendent.

New rail yard serves Honda in Alabama

Norfolk Southern and Honda Manufacturing of Alabama LLC dedicated a new $15 million rail yard at Lincoln, Ala., in March. It is the first Honda plant served directly by NS.

The yard is designed to handle outbound Odyssey minivans manufactured at Lincoln and other Honda models scheduled for future production. The 125-acre yard has eight loading tracks with capacity for loading up to 1,120 vehicles into a combination of 104 bilevel and Auto-Max(r) rail cars.

Two outbound trains daily serve the 2.8 million square foot plant, which can produce 300,000 vehicles annually.

NS' industrial development group worked with Honda in site selection and track design for this facility. This was NS' largest industrial development project in 2003. When the second planned assembly plant now under construction is complete, total investment will be more than $1 billion.

At the dedication, Ike Prillaman, NS vice chairman and chief marketing officer, said, "This is the first Honda plant that NS serves directly, and we are proud to have been selected. With the expansion of the plant, we will continue to seek new ways to create extra value for Honda to help them operate their business efficiently in distributing their vehicles to the marketplace."

The plant employs approximately 3,100 people. The second assembly line, which will produce the Honda Pilot, will begin production this spring and may expand the work force to 4,300.

"Honda quality is recognized in the products we manufacture not only here in Lincoln but in all our facilities throughout the world. A key to maintaining that quality is that our Honda dealers - and ultimately, our Honda customers - receive our products in pristine condition," said Chuck Ernst, plant manager at Honda Manufacturing of Alabama. "This new rail facility plays a vital role in making sure our Odyssey minivans - and soon, Honda Pilot sport utility vehicles - will arrive in a timely manner and in excellent condition. On behalf of the associates of Honda Manufacturing of Alabama, I extend our appreciation to Norfolk Southern, American Honda and everyone involved in the construction and operation of this facility."

Thieves leave a tell-tale trail for NS police

Footprints in newly fallen snow led Norfolk Southern Special Agent Mike Hancock to thieves in Toledo who had been stealing from NS trains for months. The trail led to a home and garage, where stolen items were found after Hancock obtained a search warrant. A total of 16 trailers and containers had been opened, and merchandise was missing from five.

"Working with the Toledo Police Department, Mike was able to identify the suspects through their landlady and obtain arrest warrants for them," said Jerry Runyan, special agent in charge. One of the suspects turned out to be on parole for manslaughter. He was arrested and sent to Jackson, Mich., to finish a 16-year sentence.

"Teamwork paid off for us in this case. We were pleased to have the assistance of the Toledo police in this investigation," Runyan said.

Urban League of Hampton Roads recognizes NS diversity efforts

Norfolk Southern is the 2004 recipient of the Urban League of Hampton Roads award given annually to a local company that has made significant progress in diversifying its work force.

David R. Goode, NS chairman, president and chief executive officer, accepts the Whitney M. Young Jr. Award on behalf of NS from Edith G. White, president, Urban League of Hampton Roads.

The Whitney M. Young Jr. Award is named for the National Urban League's 1961-1971 executive director, a civil rights leader and Medal of Freedom honoree who helped corporations understand the importance of diversity.

"Whitney Young's efforts in this area are reflected at Norfolk Southern today, where we see diversity as a critical business asset," said David R. Goode, chairman, president and chief executive officer, in accepting the award. "To have our company associated with the Urban League and our name associated with that of Whitney Young gives us great satisfaction."

"Norfolk Southern has been an exemplary corporate citizen and partner to the Urban League of Hampton Roads," said Edith G. White, ULHR president. "NS employees provide valuable community service and support to benefit thousands in need of assistance. We are privileged to recognize the valuable contributions of NS to Hampton Roads and the region."

Accident scene brings special assistance

Supervisory Special Agent Greg Honore was at the right place at the right time when he was first on the scene at a serious automobile accident in Chattanooga, Tenn.

Honore was on his way to an assignment in Georgia when he stopped to help a woman involved in the accident. After calling for help, he stayed with her until an ambulance arrived.

Honore was surprised to learn later that the woman is the daughter of Jim Hall, former chairman of the National Transportation Safety Board. Hall praised Honore's actions in a message to John Corcoran, NS senior vice president public affairs. "As Molly's father, I can't thank him enough. He is a Norfolk Southern Thoroughbred," Hall said.

NS helps heat homes

In March, Norfolk Southern gave a helping hand to Project W.A.R.M., an all-volunteer organization that provides free firewood to the less fortunate in Richmond, Va., and in the Roanoke Valley.

After Hurricane Isabel left thousands of downed trees in central Virginia in September 2003, Louis Wilson, project founder, asked NS to donate transportation of one carload of timber to the Project W.A.R.M. woodlot in Salem, Va., which serves needy families in the Roanoke Valley.

NS employees in the marketing, public affairs and transportation departments helped fulfill the request and more. Wilson was delighted with how willing NS was to help.

"Everyone I dealt with was absolutely wonderful," he said. "When NS saw that we needed more cars, they provided generously and without hesitation." Four log-filled gondolas arrived in Salem on March 19, enough to satisfy the firewood needs in the Roanoke Valley for the next three years.

"Norfolk Southern should be extremely proud of itself," said Wilson. "They have set a magnificent example of regional, public and private cooperation involving hundreds of good, ordinary men and women."