NS receives 12th Harriman
Gold Medal for safety

Norfolk Southern employees took top safety honors for the 12th consecutive year as the company received the E.H. Harriman Memorial Gold Medal award for operating the safest railroad in 2000.

In all, twelve railroads with the best employee safety records during 2000 - as documented by the Federal Railroad Administration - were recognized at a luncheon ceremony in Washington, D.C. Gold, silver and bronze medal awards went to companies in three groups of line-haul railroads, and to a fourth group of switching and terminal companies.

NS took top honors in Group A, comprising line-haul railroads whose employees worked 15 million employee-hours or more during the award year. The silver award went to Burlington Northern Santa Fe for the second consecutive year and CSX Transportation took the bronze.

In accepting the award on behalf of all NS employees, Chairman, President and Chief Executive Officer David Goode said, "This 12th consecutive gold medal - and in fact the remarkable safety record of the entire industry - is the result of individual people, each one dedicated to keeping themselves and their fellow workers injury-free, working together in teams to make that happen. I am honored to be counted as a teammate in that effort. That's why we come to this event in force, as a team - people from all around the Norfolk Southern system. We're proud of what we've done, and we know that the Harriman is not about competing for a medal. It's about recognizing progress toward a goal - double zeros: zero injuries and zero incidents."

The annual rail employee safety awards were founded in 1913 by the late Mrs. Mary W. Harriman in memory of her husband, Edward H. Harriman, a pioneer in American railroading. For many years, the program was sponsored by two sons, E. Roland Harriman and the Honorable W. Averell Harriman, both now deceased. The awards are currently administered under the auspices of the E.H. Harriman Memorial Awards Institute, with support from the Mary W. Harriman Foundation.

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Rudy Bilka receives Hammond Award

Norfolk Southern Locomotive Engineer Rudy Bilka received the Harold F. Hammond Award for his contributions to railroad safety.

Bilka works out of Altoona, Pa., and has spread NS' safety message to thousands in the community as "Engineer Rudy." Clad in bib overalls, a red bandana and a pin-striped engineers cap, "Engineer Rudy" takes his lifesaving message directly to schools, driver education classes, firefighters, Boy Scouts, truckers, ambulance operators, college students, senior citizens and law enforcement officers.

He is a member of the Altoona District Safety Committee, the only operating district on the Pittsburgh Division to achieve double zeros — zero injuries and zero incidents — in 2000. He has worked injury-free for 31 years.

The Harold F. Hammond Award, established in 1986, is awarded to an individual railroad employee who has demonstrated outstanding safety achievement during the preceding year. It is named for Harold F. Hammond, former President of the Transportation Association of America, who had served many years as chairman of the Harriman Awards selection committee. An NS employee has won the award four of the last five years.

Fleet reductions bring savings

Norfolk Southern is reducing its vehicle fleet as a result of an NS 21 study. NS 21 is the ongoing study of the company's business processes to improve customer service and reduce costs.

The company has disposed of 500 vehicles of all types and will eliminate 500 more by the end of the year.

"We asked all departments to look at every vehicle they have and decide how to use them more efficiently," said Lee Ann Brooks, manager Fleet, Material Management, Roanoke. "In some cases, the departments decided it was best to dispose of them."

Brooks said all types of vehicles were included in the assessment, from sedans to large trucks — even some school buses used by the Maintenance of Way & Structures department. By reducing the size of its fleet, NS will reduce the costs of operating and maintaining vehicles and avoid future capital expenditures. She said the cost savings are significant.

"We expect to see annual expense reductions of up to $10 million with a 1,000-vehicle reduction in fleet size and revised vehicle use policy," she said.

"We're looking at the most efficient and economical way to provide transportation to our employees who need it to perform their jobs, so we expect some changes in our policy," she said. "In addition to other railroads, we're benchmarking other companies with large vehicle fleets, such as utilities and phone companies, to look for best business practices we can implement."

Norfolk Southern forms TransWorks

Norfolk Southern announced the formation of TransWorks, a group of indirect subsidiaries headquartered in Fort Wayne, Ind. TransWorks, comprised primarily of information technology and finance staff formerly associated with Triple Crown Services, will provide information technology, accounting services, software development and process consulting to transportation companies throughout North America.

"The creation of TransWorks is another example of Norfolk Southern taking an innovative approach to enhancing the value of the services we offer," said Ike Prillaman, vice chairman and chief marketing officer. "By extending our broad portfolio of capabilities and resources to the transportation and logisitics marketplace, our customers have the opportunity to concentrate more closely on their core objectives."

Tim Minnich, vice president Finance and chief financial officer of Triple Crown Services since 1993, has been named president of TransWorks, and he will continue with dual responsibilities through 2001. Minnich joined Triple Crown Services in 1989.

"TransWorks will enable Triple Crown Services to sharpen our focus on providing bimodal transportation services with unparalleled quality and value," said Jim Newton, president of Triple Crown Services. "TransWorks will be a vital component of Triple Crown Service's continued growth."

Internet bill-of-lading system launched

Norfolk Southern launched an Internet system that gives customers a significantly enhanced ability to electronically create bills of lading for new shipments.

The bill-of-lading application, which is part of NS' Thoroughbred Information System (TIS) suite of Web-based e-commerce applications, is the first in the rail industry to give the customer an estimated rate immediately upon requesting a shipment.

The system, an expansion of existing electronic applications, creates an electronic waybill based on historical data stored in the company's mainframe. It minimizes customer data entry and reduces the effort required to ensure timely and accurate shipping information.

A demonstration of the system is available on Norfolk Southern's Web site. A separate version for intermodal shipments is in testing and will be released over the next several months. A version for hazardous materials shipments is planned for release later this year.

Other applications deployed under TIS include Customized Reports, Mileage Inquiry, Demand Trace, Coal Transportation Management System, Diversion and Reconsignment, Waybill Verification Inquiry, Shipment Weights and Shipment History.

NS highlights initiatives for
2001 at Annual Meeting

Enhanced services, infrastructure investments, restructuring initiatives and comprehensive analyses of key business areas will help increase shareholder value and handle business growth, Norfolk Southern said at its meeting of shareholders in Norfolk May 10.

"We have the right people working on the right plan for progress," said David Goode, chairman, president and chief executive officer. "Norfolk Southern has the network, the determination and the value to be the most successful transportation company in the 21st century."

Goode said Norfolk Southern's performance in 2000 was disappointing due to an economic slowdown, high diesel fuel prices and changes in rail markets at a time when the railroad was recovering from prior service problems.

However, Norfolk Southern has both staying power and growing power, he said. "Our expanded transportation network has the capacity and reach to take on large amounts of additional business. We're moving full speed ahead in our efforts to deliver the value you expect from your investment in Norfolk Southern."

Goode described the benefits of Norfolk Southern's pace-setting safety performance, new and expanded services and facilities, improvements in work force productivity and disposition of surplus cars, facilities and track. He reported on NS 21, an intensive review of business processes in order to improve quality, efficiency and cost control.

Goode said he is encouraged by Norfolk Southern's progress in the first quarter of 2001, in which the corporation saw an improved operating ratio and growth in railway operating revenues, fueled by double-digit increases in both coal and intermodal.

Praising Norfolk Southern's employees for their "ingenuity, drive and talents," Goode introduced Rudy Bilka of Altoona, Pa., a locomotive engineer on the Pittsburgh Division, and Paul Contrado of Norfolk, a mechanical supervisor at Lamberts Point. Bilka recently received the rail industry's top employee safety honor, while Contrado received the industry's top environmental excellence award.

In official business, stockholders re-elected three directors: Alston D. Correll of Atlanta, chairman, chief executive officer and president of Georgia-Pacific Corp.; Landon Hilliard of New York City, a partner in Brown Brothers Harriman & Co., a private bank in New York City; and Jane Margaret O'Brien of St. Mary's City, Md., president of St. Mary's College of Maryland.

Stockholders ratified the appointment of KPMG LLP as auditors, approved an amended long-term incentive plan, and defeated two stockholder proposals.

NS Merit and Special Scholarship
winners announced

Congratulations to these 10 sons and daughters of Norfolk Southern employees who received scholarships from Norfolk Southern Corporation as part of the company's annual scholarship program.

Merit Scholarships

Erin M. Gardner, daughter of Altoona, Pa., locomotive engineer George Gardner and Christine Gardner, graduated from Altoona Area Senior High School. She will attend Penn State University.

Lucas M. Klauss, son of Atlanta business account consultant Gudrun Klauss and Rainer Klauss, graduated from Brookwood High School. He will attend the University of Georgia.

Special Scholarships

Melissa A. Bell, daughter of Altoona, Pa., carman Charles Bell and Debra Bell, graduated from Hollidaysburg Area High School. She will attend Juniata College.

Matthew R. Garner, son of Hollidaysburg, Pa., machinist David Garner and Iva Garner, graduated from Bellwood Antis High School. He will attend Juniata College.

Joshua R. Hailey, son of Roanoke dispatcher Randall Hailey and Colleen Hailey, graduated from Cave Spring High School. He will attend the University of Virginia.

Jonathan D. Lobb, son of Pittsburgh conductor Alan Lobb and Jill Lobb, graduated from Kittanning High School. He will attend Harvard College.

Deborah Snyderburn, daughter of Roanoke yardmaster Jeffrey Snyderburn and Sharon Snyderburn, graduated from Walsh Jesuit High School. She will attend Canisius College.

Robert D. Wells, son of Andover, Va., senior general foreman Barry Wells and Martha Wells, graduated from John I. Burton High School. He will attend the Georgia Institute of Technology.

Kelly L. Williams, daughter of Baltimore carman Albert Williams and Connie Williams, graduated from the Baltimore School for the Arts. She will attend American University.

Helena M. Pruiett, daughter of Harrisburg, Pa., trainmaster Thomas Pruiett and Kathryn Pruiett, graduated from Cumberland Valley High School. She will attend the University of Pennsylvania.