NS Police, N.J. authorities derail theft ring

Members of the "Conrail Boyz," a theft ring operating in northern New Jersey that stole millions of dollars of goods from freight trains and some railroad yards, were arrested and indicted as a result of an investigation by railroad police officers.

The gang stole numerous items from NS, CSX and Conrail trains since 1992 using an elaborate and sophisticated process. Gang members used a network of information sources, including stolen radios, to determine which trains were moving through the congested area. They then waited and hopped aboard slowing or stopped trains. Trailers were broken into with bolt cutters and the stolen merchandise tossed to waiting gang members.

"This is one of the largest criminal enterprises to ever target North American railroads. These people had a very organized structure that allowed them to gain information about freight trains movements through the area," said Joe Geng, NS police special agent in charge. "Their organization had many levels and each level had its job to do."

Geng said that even with increased security for trains and at facilities, the gang was able to operate.

"They found ways to get around sophisticated security systems and increased police surveillance," Geng said.

Conrail Police began an investigation, which continued after Conrail police operations were integrated into NS and CSX police departments.

A two-year investigation by railroad police and the New Jersey Department of Criminal Justice brought about the arrests.

Geng credited Tony Dragani, supervisory special agent, with bringing the gang's activities to the attention of the state agency.

"Tony's work on this theft ring allowed us to categorize its activity as racketeering under organized crime statutes," he said. "That raised the level of the response."

With the cooperation of the New Jersey officials, the investigation resulted in the indictment and arrest of 24 theft ring members.

"This was a tremendous team effort that paid off for all of us," Geng said. "These indictments mean our customers and our employees can operate in a more secure environment."

How do you spell relief in Chicago?

Chicago is the freight railroad crossroads of the nation. With one quarter of all the nation's freight rail traffic originating, terminating or passing through Chicago, the region's rail system is vital to national and international commerce.

The enormous volume of rail traffic in the area has been a concern to railroads and city fathers for some time. More than 1,200 trains operate in the area daily. Rail traffic is expected to double by 2020. Even though Norfolk Southern has worked to improve traffic flows through Chicago by working with the Chicago Transportation Coordination Office and adhering to its Thoroughbred Operating Plan, historic chokepoints continue to hamper transit times.

"We've been able to significantly improve our average transit time from the east coast to Chicago," said Hugh Kiley, assistant vice president operations. "Unfortunately, because the city's rail network was designed in the mid-1800's, once we reach Chicago we lose some of those gains at interchange with other railroads. That's unacceptable to our customers and NS."

Help is on the way. In an unprecedented demonstration of industry cooperation, the six Class 1 railroads have joined with city, state and federal officials to design a comprehensive plan to keep passenger trains moving on schedule and keep freight moving for customers. The result is the Chicagoland Region Environmental and Transportation Efficiency (CREATE) project, a $1.5 billion public-private partnership that will reduce rail and highway congestion and add freight and passenger capacity.

Under the CREATE project, 70 specific improvements have been identified in four key freight corridors and one passenger corridor, including 50 miles of new track, more than 360 new switches, substantial investment in traffic control systems and 25 highway/rail grade separations. In the case of NS, which has substantial passenger operations on its tracks, plans are to construct overpasses for passenger traffic at the four points to separate METRA from NS operations. NS' engineering department worked closely with METRA to develop a passenger express corridor.

"There's a tremendous public benefit to making these improvements," said Tony Ingram, vice president transportation operations. "By separating passenger operations from freight, everyone keeps moving. Otherwise, we at NS have to stop operations when a passenger train needs to move across our tracks. It doesn't do either operation much good."

Ingram said the plan also would improve grade crossing safety, bring substantial energy saving and environmental benefits and reduce congestion on area roadways. It also improves service to NS customers and allows for more growth in intermodal business.

"We believe this plan provides tremendous benefits to the community and NS customers," he said. "Less congestion on the roads and the rails means safer, more efficient operations. We can serve our customers better and grow our business. Everyone wins in this plan."

Kiley said funding for the federal portion of the total project cost is being sought through TEA 21 funds. NS, CSX Transportation, Union Pacific Railroad, Canadian National Railway, Burlington Northern Santa Fe Railroad and Canadian Pacific Railway will contribute $210 million. The remainder will be funded by METRA, Chicago and the state of Illinois. The CREATE project is expected to take six years to complete.

Duty. Honor. Country.

NS commended for contribution to military efforts

U. S. Army Brig. Gen. Barbara Doornink commended Norfolk Southern for the company's efforts during Operation Enduring Freedom and Operation Iraqi Freedom. In a letter to David R. Goode, president, chairman and chief executive officer, Doornink called the coordination between NS and the Military Traffic Management Command outstanding.

"These relationships will continue to grow and provide unparalleled service in the future," she said.

Brooke Balbach, product manager-government/miscellaneous transport, said NS was successful in meeting the needs of the military due to a partnership between the marketing department, operating divisions, the National Customer Service Center and the clearance department.

Doornink cited the company's ability to be flexible, ingenious and efficient when responding to the Army's needs and challenges. She noted as innovative daily conference calls between the Military Traffic Management Command, the major railroads and the ports of Charleston S. C., Beaumont Texas, Corpus Christi Texas, and Jacksonville Fla.

"A lot of the accolades should go to the operating people for getting crews together and for expediting their unit train movements and keeping the lines of communication open," Balbach said. "It was a great team effort."

Gregg nominated for Defense Joint Service Commendation medal

Roger Gregg, a carman at John Sevier Yard in Knoxville, Tenn., who is currently serving in the U.S. Navy Reserves, has been nominated for the Defense Joint Service Commendation Medal. He is serving as operations officer for Information Analysis Infrastructure Protection, which is a part the Department of Homeland Security.

The medal is given for meritorious achievement or service. The 27-year railroad employee was nominated by Rear Adm. James Plehal, who said Gregg "brought a combination of personal expertise, management skill and operational experience that established him as an important leader directly supporting Operation Noble Eagle." Gregg was called to active duty in January 2001 to support the investigation of the bombing of the USS Cole.

Second-quarter, first-half results reported

Norfolk Southern Corporation reported second-quarter net income of $137 million, or $0.35 per diluted share, an increase of 15 percent, compared with net income of $119 million, or $0.31 per diluted share, in the second quarter of 2002.

"We produced better results despite continued economic slowness in the quarter and considerable downward pressure on general merchandise traffic," said David R. Goode, chairman, president and chief executive officer. "The quality of our transportation continues to improve due to the strength of our operating plan and our ability to operate a high-service railroad in a tough economy."

For the first six months, net income from continuing operations, before required accounting changes, was $222 million, or $0.57 per diluted share, compared with net income of $205 million, or $0.53 per diluted share, during the same period of 2002.

Net income for the first six months was $346 million, or $0.89 per diluted share. It included a $114 million gain, or $0.29 per diluted share, largely due to a required change in accounting for the cost of removing railroad crossties, and a $10 million gain, or $0.03 per diluted share, from discontinued operations resulting from the 1998 sale of a former motor carrier subsidiary.

Second-quarter railway operating revenues of $1.63 billion were the highest of any quarter in NS history and improved 3 percent compared with $1.59 billion in the second quarter of 2002. Railway operating revenues for the first half of 2003 also set a six-month record, rising 3 percent to $3.19 billion compared with $3.09 billion for the same period a year earlier.

Coal revenues in the second quarter climbed 11 percent to $389 million compared with second-quarter 2002. The growth was driven by an increase in utility shipments as power companies replenished stockpiles. For the first half, coal revenues improved 5 percent to $743 million compared to the same period a year earlier, the result of stronger electricity production due to seasonable weather conditions in NS' service region.

Intermodal revenues set records, rising 2 percent to $300 million in the second quarter and 4 percent to $589 million for the first six months compared with the same periods of 2002. The growth was the result of strong international business and successful conversion of new truck-competitive, transcontinental interline services.

Second-quarter general merchandise revenues of $944 million were down slightly compared to second-quarter 2002, particularly in the automotive, metals and construction and chemical commodity sectors. For the first six months, general merchandise revenues increased 2 percent to $1.86 billion compared with the year-earlier period. Agricultural revenues, strengthened by fertilizer and grain shipments, posted the largest gain, growing by 12 percent in the quarter and 9 percent for the first six months, compared to the same periods a year ago.

Paper and forest products revenues grew by 6 percent for both the second quarter and the first six months compared with the same periods of 2002.

Railway operating expenses increased 5 percent for both the second quarter and the first six months of 2003 compared with the same periods last year. These increases primarily were due to increased compensation and benefits, higher diesel fuel costs and increased casualty and other claims costs.

For the quarter, the railway operating ratio, the percentage of revenues required to operate the railroad, was 81.8 percent compared with 79.8 percent in the same period of 2002. For the first six months, the operating ratio was 83.4 percent, compared with 81.9 during the same period of 2002.

Gateway to recovery celebrated at DARS Jubilee

Participants in Norfolk Southern's Drug and Alcohol Rehabilitation Services program celebrated a gateway to change and freedom at the 27th Annual Jubilee held in St. Louis. One hundred forty employees, family members, DARS staff and NS management guests attended the meeting.

The jubilee focused on the gateway through which recovering addicts move. Some described the process as emerging from a forest. One man said he lived like an animal while drinking. He isolated himself from others but formed relationships with others after becoming sober. Another described it as going beyond physical pleasure and pain to enjoying mental, emotional and spiritual aspects of life as well.

Weekend events included a banquet and dance and a cruise down the Mississippi River. Several sessions allowed people to share their stories of addiction and recovery.

Key speakers included a couple recovering from addiction, a trainman who had been sober for 17 months, and the banquet speaker who told of six year's sobriety as his grateful wife watched several feet away. During a red-ball session attended by 100 people, one family member said she has attended every jubilee. She said DARS has saved five lives, including herself, her husband and their three children.

"We come back every year to make sure the program is there for the next railroader," she said. "Maybe our story will save misery for others."

Jack Scott, manager DARS, said the jubilee shows the ripple effects of addiction and subsequent recovery. Scott said addicts harm more people than they realize because of their behavior.

DARS assistance affects more people as well. "We might be supporting one employee but we are helping more people than we can see," he said.

Next year's jubilee will be held June 25-27 in Atlanta. For more information on the program and a list of DARS counselors, visit the employee resource center on the company's Web site at http://www.nscorp.com, or call NS medical services at 1-800-552-2306.

DARS Counselors

George D. Johnson Jr. elected to Norfolk Southern board

George D. Johnson Jr., chief executive officer and director of Extended Stay America Inc., has been elected a director of Norfolk Southern Corporation.

Johnson has more than 30 years experience developing and managing businesses. In 1995 he co-founded Extended Stay America, one of the country's fastest-growing companies. Headquartered in Spartanburg, S.C., ESA owns and operates 461 hotels coast-to-coast.

Johnson is managing general partner of American Storage and a founder and director of Advance America. His real estate development company, Johnson Development Assoc., manages five million square feet of retail, industrial, office and apartment space. Johnson is a director of Boca Resorts Inc. and Duke Energy Corp.

Johnson previously was president of Blockbuster Entertainment Corp.'s Consumer Products Division; managing general partner of WJB Video, the largest Blockbuster franchisee; a director of the Federal Reserve Bank of Richmond; and president of the South Carolina Chamber of Commerce. He served three terms in the South Carolina House of Representatives. Johnson earned degrees from Wofford College and the University of South Carolina.

NS police agent joins FBI terrorism task force

A Norfolk Southern police special agent received a special assignment from the Association of North American Railroad Police Chiefs. C. N. "Curt" Stanley, a supervisory special agent from Norfolk, was chosen to represent the nation's railroad police as a member of the Federal Bureau of Investigation's National Joint Terrorism Task Force in Washington, D.C.

After Sept. 11, 2001, the task force was formed to coordinate and monitor intelligence-gathering activities for national security. It consists of full time professional law enforcement and intelligence specialists from 36 federal agencies who receive information from 66 regional joint task forces.

"This is an extraordinary honor for Curt and the NS police department," said Steve Hanes, director police. "His appointment speaks volumes about the superior level of professionalism, education and training NS police exercise in their jobs every day."

2004 Calendar Contest winners announced

Once again Norfolk Southern employees found artistic ways to look at trains in the 10th annual 2004 NS wall calendar contest. Judges from Information Technology, Marketing, Mechanical, Public Relations, Transportation and Visual Communications, spent several days examining photos from across the NS system. Here are the winners:

Gary Artrip, maintainer, communications and signals, Nitro, W.Va.; Bob Bahrs, utility yard conductor, Secaucus, N.J.; Rick Parsons, manager pricing-auto parts, Norfolk; John Lindquist, conductor, Fort Wayne, Ind.; Bruce Kerr, locomotive engineer, Harrisburg, Pa,; Don Woods, conductor, Charlotte, N.C.; Dave Ori, yardmaster, Cleveland; Casey Thomason, locomotive engineer, Columbus, Ga.; Brian Putman, senior design and industrial development engineer, Atlanta; Eric Augatis, conductor, Allentown, Pa.; Eddie Brouse, yardmaster, Enola, Pa.; G.T. "Snake" Atkinson, locomotive engineer, Baltimore; Jim Haag, locomotive engineer, Enola, Pa.; and Steve Rathke, locomotive engineer, Toledo, Ohio.

"We received a lot of great train photos this year and many perfect three-quarter train views in the calendar contest," says Rhonda Broom, manager advertising. "This year's winners proved the importance of composing an entire picture with a train in it."

NS employees will receive one copy of the calendar from their supervisors.

For others, the 2004 NS wall calendar may be purchased $10.00 (including tax, postage and handling) using a credit card by calling toll-free 1-800-264-4394 between 8:30 a.m. and 5 p.m. EST, or by sending a check or money order for that amount to:

Norfolk Southern Calendar
c/o Nyberg-Fletcher
2915 Whittington Ave.
Baltimore, Md. 21230.