Challenge leads to more customer options,
new NS coal business

A large power plant sitting next to a Norfolk Southern rail line — but receiving no coal by rail — was too good a challenge to pass up for NS' coal business group.

The Sammis Power plant at Stratton, Ohio, received its coal principally by barge and some by truck.

Doug Evans, director utility coal north, determined that the plant operator, First Energy, was interested in adding another cost-efficient delivery option so the company could receive types of coal not available by barge.

"We knew we could make a strong case for efficient and economical rail transportation," Evans said.

Bill Arrington, manager utility coal north, worked with First Energy to develop a commercial agreement for the new rail movement. Jim Forrester, manager equipment and business development, and Jerry Nassar, manager resource development, worked with First Energy and NS' transportation and engineering departments. Together they coordinated the transportation delivery plan and designed and constructed tracks serving the rapid-discharge rail unloading facility. Bob Bartle, Pittsburgh Division superintendent, and Lee Meadows, division engineer-track, provided additional support.

First Energy uses its private train set of 130 rapid-discharge cars to bring coal from Southwestern Pennsylvania to the new unloading facility. The train is unloaded in less than four hours before returning to the mines.

"We were able to help First Energy develop a state-of-the-art facility that gives it many more options for receiving inbound coal," Evans said. "The result of this effort is that our customer has another delivery option that allows them to expand their reach to different coal fields. With the addition of this new rail unloading facility, we now expect to transport about 20,000 carloads of inbound coal each year by rail. Service to the facility began in August, and we've been averaging 12 to 14 trainloads each month."

Two hurricanes in one week challenge
New Orleans, Mobile employees

Norfolk Southern employees in New Orleans and Mobile, Ala., had to contend with two hurricanes in one week in late September and early October.

As Hurricane Isidore headed for New Orleans Sept. 24, employees moved 515 rail cars and other equipment from Oliver yard to higher ground. Communications and signals personnel removed circuit boards from signals to prevent damage. Vehicles at auto ramps were moved, and traffic destined for New Orleans was detoured.

On Sept. 25, water flowed up to 4 feet over NS tracks. A levee break caused a track washout 15 feet long and 3 feet deep.

Isidore continued its path through Mobile, bringing equally heavy rains and major flooding. Mobile area employees took precautions to prevent damage.

"Everyone worked together to secure their areas," said Mel Crawley, Alabama Division superintendent. "We had everything moved or tied down with time to spare."

Repairs were made and operations were restored on Sept. 27.

On Oct. 2, employees of both areas braced for another round of bad weather as Hurricane Lili approached the Louisiana coast. The storm was strengthening, and it appeared that both areas would incur severe damage.

NS employees protected equipment and facilities, and traffic again was detoured. The storm weakened significantly, and damage was minimal.

"I'm extremely proud of everyone on this division," said Crawley. "They met severe operating challenges head-on, resulting in minimal impact for our customers."

Service was restored in Mobile on Oct. 3 and in New Orleans on Oct. 4.

Strategic Sourcing continues efforts to reduce costs

Norfolk Southern's strategic sourcing group is continuing its efforts to reduce nonpersonnel-related expenses across the company. Since summer 2001, cross-functional teams have identified $36 million in opportunities, and there are many more, according to Jake Allison, assistant vice president strategic sourcing.

"Strategic sourcing examines the total cost of ownership - or entire economic landscape - of purchased goods and services, including purchase price, internal costs and costs shared with suppliers," Allison said. "When we analyze our costs this way, we have a much clearer picture of where we can reduce costs."

To accomplish its goal, the department forms teams of subject matter experts who identify market, demand-management and compliance-related opportunities for a given category of corporate costs. Teams build financial, operational and market-related facts for each category. They use that information to develop a sourcing strategy best suited for NS.

As an example, the other track material team, sponsored by Tim Drake, chief engineer line maintenance Eastern Region, is determining the service levels required to support a reliable and efficient distribution network of those materials. Team members include subject matter experts from engineering and material management and a strategic sourcing team leader.

"Support from key decision makers is essential for a team's success," Allison said. "Gary Woods, vice president engineering, and Rick White, assistant vice president material management, have demonstrated their support by helping to build a strong cross-functional sourcing team to tackle this difficult problem."

Previous teams have completed sourcing strategies for program ballast distribution, intermodal terminal operations, corporate purchasing card, employee lodging and travel, and energy. The annualized savings is projected to be approximately $26 million. Other ongoing projects include diesel fuel, locomotive materials and telecommunications.

Operation Lifesaver appeals to media
to stop using photos of people on tracks

Alarmed by a 23.6 percent increase in pedestrian rail trespass deaths in the first four months of 2002 compared to 2001, the nonprofit highway-rail safety group Operation Lifesaver is urging news media to refrain from using photos of people walking, sitting or playing on railroad tracks.

A four-color poster with samples of news photos, magazine covers and fashion spreads showing children and adults on the tracks is being sent to thousands of editors at newspapers and magazines nationwide.

Under the headline, "Losing Readers?" the eye-catching poster states, "More than 500 Americans died as pedestrians on the rails last year, believing they weren't in any danger. Many people - even news photographers, writers and editors - confuse the area along the tracks with a public park. News photos and ads reinforce this notion.

"Nothing could be further from the truth," the Operation Lifesaver piece continues. "Tracks are private property, and these pictures show illegal, potentially deadly behavior.

If you're on the tracks, the odds of meeting a train are increasing."

Operation Lifesaver President Gerri Hall explains the reason for the mailing. "We are constantly seeing - and writing letters to editors about - photos or stories that glamorize dangerous behavior around tracks and trains. Kids tend to imitate what they see in the media. With trespass deaths up sharply this year compared to last, we decided to appeal directly to the news media to let them know that railroad tracks are for trains, not people."

The group suggests that editors consider instead running a story about Operation Lifesaver's grassroots safety education program. The nationwide program certifies speakers who give safety presentations to community groups, schools, truck drivers, emergency response personnel and others.

TRANSCAER whistle-stop tour
delivers safety message

Emergency responders in six locations in the Southeast had the opportunity to learn more about hazardous material transportation and incident response during Norfolk Southern's TRANSCAER Whistle-Stop Tour in October. Transportation Community Awareness and Emergency Response, or TRANSCAER, is a national program to increase community understanding of the safe transportation of hazardous materials and the importance of emergency planning.

Representatives from Operation Respond, a nonprofit organization dedicated to providing timely and accurate information to emergency responders, demonstrate the use of hazardous material incident response protective clothing in Alexandria, Va.

"We use this opportunity to show how we can assist communities and their emergency response personnel in emergency planning," said Dave Schoendorfer, manager hazardous materials. "It's a great way for people from the community to meet transportation, chemical and environmental professionals and schedule further training for their personnel."

The tour kicked off at Washington, D.C.'s, Union Station with remarks from Allan Rutter, Federal Railroad administrator; Ed Hamberger, president and chief executive officer of the Association of American Railroads; and U.S. Sen. John Warner of Virginia. Other sites included Alexandria, Va., Spencer and Asheville, N.C., Knoxville and Chattanooga, Tenn., and Decatur, Ala.

At each site, hands-on training and presentations focused on rail-, truck- and chemical-specific information. NS' Exhibit Car was on hand, and the NS Lawmen provided lunchtime entertainment.

"We're always pleased at the positive response from the communities we visit during these kinds of events," said Schoendorfer. "They create dialogue, build stronger partnerships and a better understanding of hazardous materials transportation."

Chicago Mixing Center receives AAR top honors

A surprise audit in August by the Association of American Railroads brought high marks for quality to the employees at the NS-served Chicago Mixing Center. The audit included a detailed inspection of the facility, equipment and operating practices.

Auditors looked at everything from the cleanliness of the facility to shipping and vehicle handling quality standards. The results of the audit are shared with all North American vehicle manufacturers, other automotive distribution facilities and competitors making them extremely important to NS' automotive business.

Scores for destination and origin quality reviews exceeded industry averages. The destination quality review score was one of the best in the nation at 96 percent, compared to an average 87 percent for the industry. The origin quality review score was 86 percent, compared to the industry's 84 percent average. According to the AAR, this was the best three-month improvement ever.

Triple Crown Services named top
intermodal service provider

Triple Crown Services Company was named top intermodal service provider by Logistics Management & Distribution Report. This is the second consecutive year that Triple Crown Services earned the top honor in Logistics magazine's "Quest For Quality" customer survey.

The Quest For Quality survey is one of the largest customer satisfaction studies in the transportation/logistics field with more than 3,000 buyers of transportation and third-party transportation services participating.

Jim Newton, president of Triple Crown Services, said, "We are very pleased to be honored with this prestigious award. To win it for a second time is a significant distinction and a tribute to the continued focus of our exceptional team. Providing our customers with the highest quality truckload service is the primary element of Triple Crown Services' mission statement, and this award from Logistics magazine is objective validation of our commitment to fulfilling our mission."

Newsbreak, Web site, calendar judged
best in the industry

NS Newsbreak, Norfolk Southern's Web site and the 2002 wall calendar received first-place honors in the Association of Railway Communicators' Distinguished Achievement Awards competition.

NS Newsbreak, which won the Best Newsletter category, is managed and edited by Andrea Just, manager internal communications, and designed by Frank Wright, manager design. In addition, "Road to recovery brings new opportunities," a feature article published in the November 2001 issue of Newsbreak, took first place for feature articles. Just wrote the article.

Rob Chapman, manager online communications, manages the NS Web site and its content. Rhonda Broom, manager advertising and promotions, manages NS' calendar photo contest and production.

Thank a veteran on Nov. 11

In 1921, an unknown World War I American soldier was buried in Arlington National Cemetery. A few years earlier, similar ceremonies took place in England and France. These memorial gestures all took place on Nov. 11, giving universal recognition to the celebrated ending of World War I fighting at 11 a.m., Nov. 11, 1918. The date became known as Armistice Day.

Armistice Day officially received recognition in America in 1926 by congressional resolution. It became a national holiday 12 years later. A few years after the holiday was proclaimed, war broke out in Europe. Some 16.5 million Americans took part, and 407,000 of them died in service, more than 292,000 in battle.

To pay tribute to those who had served in this latest Great War, Armistice Day was given the name Veterans Day as an occasion to honor those who had served America in all wars. In 1954 President Eisenhower proclaimed Nov. 11 as Veterans Day.

On this Veterans Day, we thank our Norfolk Southern employees who have served and continue to serve our nation.

2003 wall calendars available

Employees will receive a complimentary Norfolk Southern wall calendar through their supervisors. Additional calendars may be purchased for $9.95 (including tax, postage and handling) using a credit card by calling toll-free 1-800-264-4394 between the hours of 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.

Quotable

"We're going to be here as a strong part of the economy. As long as goods are produced and consumed, we'll carry them — and do so profitably. Now is our time to shine.

"More than ever before, our nation depends on us as railroaders to operate a safe, secure and efficient transportation network. In a global logistics chain, rail right now is the strongest link."

David R. Goode, chairman, president and chief executive officer,
before the Western Railway Club, Chicago, Oct. 15.