Dear fellow employees,

As we approach the end of the year, I want to tell you that I personally appreciate what you have done to help Norfolk Southern succeed despite the challenges we face as a company.

Certainly, 2001 tested us. The recession that hurt the business of our customers in turn negatively affected our business. Then came the catastrophic events of Sept. 11 that further damaged an already-fragile economy.

Through all of this, you stayed focused on safety and customer service, and you helped us improve our company. You also demonstrated your compassion in times of crisis.

You continued your leadership in safety. After earning an unprecedented 12th consecutive E.H. Harriman Gold Medal Award for your safety record last year, you significantly improved the number of days worked injury-free this year.

You worked to improve service to our customers in every way possible. Your support is helping us to roll out our Thoroughbred Operating Plan, making our service more consistent and reliable. You have embraced the philosophy and concepts of NS 21 so that it has become an integral part of our business. You have developed new services and facilities that will help our business grow as the economy improves.

On the personal side, you gave blood and cash donations to the Red Cross, The Salvation Army and other charities after the events of Sept. 11. Your generosity also extended to our own people in West Virginia who lost so much in the summer floods.

I am immensely proud of your care and concern for others and your focus on helping us move ahead no matter how tough the challenges. I can't predict when we will see a rebound in the economy. I do know that it will recover, and, thanks to your efforts, Norfolk Southern will be able to grow with it.

Thank you for the tremendous job you have done for this company. May you and your families have an enjoyable and safe holiday.

David R. Goode

PLC marks 100th anniversary

Pocahontas Land Corporation celebrated its 100-year anniversary by hosting a dinner in Bluefield, W.Va., Oct. 30. PLC President Daniel Smith presided over the festivities, which included remarks by Gov. Bob Wise, Norfolk Southern Chairman, President and Chief Executive Officer David R. Goode and coal historian Dr. C. Stuart McGehee, dean of the Social Studies Department of West Virginia State College.

Among the 220 people attending were PLC employees, NS employees and leaders of the coal and rail industry, such as Former NS Chairman Arnold B. McKinnon, former President of PLC Bob Raines, Bill Raney of the West Virginia Coal Association and Mike Callaghan, West Virginia's Secretary of Environmental Protection.

Gov. Wise expressed his appreciation to NS for its flood-relief effort this past summer. He also noted several successful projects built on PLC sites, including Twin Falls State Park, Mt. View High School, Twisted Gun Golf Course and New Hope Village.

Goode expressed his gratitude to the Bluefield community and the region for the rewarding relationship PLC has experienced. "The story of Pocahontas Land is a story about more than coal," he said. "It is a story of how the company's activities have supported generations of miners, railroaders and steelworkers in West Virginia and throughout the world.

"Through sound land management practices and leadership in reclamation efforts, Pocahontas Land has given back to the community, providing educational and recreational enrichment as well as economic opportunity for many," Goode said.

Goode reaffirmed NS' commitment to its coal business.

"Norfolk Southern obviously is bullish on coal for the future," he said. Pocahontas Land manages more than a million acres, and 70 percent of the current production of its lessees is used in electricity generation. "Our nation's energy needs and public policy incorporating clean-coal technology favor both Pocahontas Land's resources and Norfolk Southern's transportation network."

McGehee marked the event with the debut of his book, "A Century of Stewardship," a detailed history of PLC. Smith and other PLC employees worked with McGehee on the book's outline earlier this year. Every guest at the dinner received a copy.

Bill King, mayor of Bluefield, Va., and Bob Perkinson Jr., mayor of Bluefield, W.Va., presented keys to their respective cities to Goode and Smith. Mayor King also officially proclaimed Dec. 31, 2001, to be Pocahontas Land Day.

"The event went very well," said Smith. "People were thrilled to receive Dr. McGhee's book and asked for Mr. Goode and me to sign them. It was just like signing year books in high school."

Employee ID numbers change
to protect privacy

To protect the privacy of employees, Norfolk Southern has assigned to each current employee a unique seven-digit identification number for use in place of Social Security numbers in internal systems and processes. For new hires, employee IDs will be generated randomly in NS' Human Resources system. Where feasible, the new number also will be used as identification for NS employees with third parties with whom the company interacts.

Employees can find their ID number on pay stubs, in the "My Personal Info" section of the company's electronic Employee Resource Center and under Option 2 of MYINFO. The transition to employee ID use in other systems and processes will take time, as computer applications that have Social Security numbers imbedded in them are modified. Several large-scale projects to do this are already under way.

Employees are still required to furnish their Social Security number to NS for reporting wage and tax information to the Internal Revenue Service, the Social Security Administration and the Railroad Retirement Board. The company's long-term goal is to limit its use wherever possible.

NS 21 moves to phase 2

NS 21, Norfolk Southern's process analysis and improvement program, has been instrumental in the elimination of more than $70 million in costs this year. The effort is moving forward with the formation of a program management office, which will assist with projects throughout the company aimed at reducing costs and improving performance.

"We've had solid success in round one using some personnel from Mercer Management Consulting to help coordinate our various team projects," said Tom Mullenix, vice president Human Resources and NS 21 steering team member. "Now, it's time to bring the coordination of all our projects under one internal group."

The new group will be led by Karol Weigand, director Program Management with help from Paddy O'Neill, manager Program Management. A program analyst will join Weigand and O'Neill shortly.

"The work that has been done so far is truly commendable," said Weigand. "I look forward to working to keep the successes coming."

"Both Karol and Paddy have the type of experience and expertise we were seeking to help NS move forward," Mullenix said. "It's essential that we keep our momentum and constantly look for opportunities to improve everything we do."

Road to recovery brings new opportunities

On a crisp autumn evening in Augusta, Ga., general yardmaster Rick Wagoner has just arrived at Nixon Yard. He checks to make sure he has the crews needed to do the night's work. He looks at inbound traffic, destinations and switching requirements. He takes time to welcome someone recently on medical leave back to work.

Rick Wagoner

Wagoner is typical of most Norfolk Southern yardmasters except for one thing. He was injured on the job in 1997, resulting in the amputation of his leg just below the hip.

"I was a conductor when the injury happened," he said. "I knew I couldn't do that job again but really wanted to keep working for the railroad, because I love what I do."

Even though Wagoner worked diligently at his recovery and rehabilitation, no suitable jobs were available in Augusta when he was able to return to work. He worked for other employers in the interim. He did, however, keep in touch with NS through Disability Support Service Manager Michael Maher, who immediately contacted him when a job became available.

Maher works as a liaison with Claims, Medical and other departments to help injured employees get back on the job.

"We want to give recovering employees every opportunity to use their experience and expertise in some capacity at NS," said Maher. "They've invested time and effort in NS, and we don't want to lose them."

Wagoner was eager to return to the railroad, and Maher worked with him to get the necessary training to move into a general yardmaster's position.

"With Rick's knowledge of train operations, he was a natural for this position," said Maher. "His can-do attitude makes a difference, too. His commitment to recovery and his perseverance when things get tough give him an extremely positive attitude. He was certain he'd be successful, and he is."

The voluntary disability support program has existed since 1985. Since then, many employees have returned to work after injury or illness. The Medical department acts as a counselor in the program, working closely with the Rehabilitation department and the disabled employee. They review medical exams, tests and physician reports to assist in placing the employee in a position consistent with his or her physical capabilities, including any appropriate reasonable accommodations. If a job is not available within the company, the program works to identify other employment or reimburse educational expenses leading to a degree or certificate.

For illness or injury whether on or off the job, vocational testing is offered. If an employee is unable to perform the essential functions of his or her original occupation, the program looks for alternate employment within the company.

"We're proud of what we've been able to accomplish in helping our experienced employees return to work at NS," said Maher. "Success stories such as Rick's are testimony to that success."

Wagoner's recovery has gone beyond returning to work. He continues to enjoy fishing, hunting and coaching his 10-year-old daughter's softball team.

"I'm glad to be back working at NS and doing the things I enjoy when off the job," said Wagoner as he prepared for the night's work. "My goal here is to do the job well every day and make our customers happy. At home, I love spending time with my family and friends. That's what life is all about."

Meet John W. Whitaker: A railroad pioneer

John W. Whitaker can count any number of "firsts" in his life. During World War II, he was a fighter pilot, one of the celebrated Tuskegee Airmen. He worked for Norfolk Southern predecessor Central of Georgia after the war and was a charter member and president of the International Brotherhood of Railroad Employees, a group that addressed workplace discrimination issues. He was Central of Georgia's first African-American locomotive engineer. Later, he became Southern Railway's first African-American transportation officer as road foreman of engines.

On Oct. 30, Whitaker added another first. NS named its newest intermodal terminal at Austell, Ga., after him. He and his wife, Bess, were honored guests at the dedication ceremonies.

John W. Whitaker, shown in this photo when he became the first African-American locomotive engineer on the Central of Georgia.

"I am deeply honored to have my name on this facility, but I didn't achieve all these things alone," he said. "This kind of recognition of all our achievements has been a long time in coming."

Whitaker joined the railroad at a time when African-Americans were not accepted in certain jobs. Black and white employees were represented by separate organizations.

"We had some real difficulties getting good jobs and being able to advance," he said.

He first worked as a fireman servicing locomotives. "We would run out with water, oil and coal to service steam engines. It was tough, dangerous work sometimes," he said.

Whitaker was the second president of the International Brotherhood of Railroad Employees.

"Our first attorney was Thurgood Marshall," he said. "We had to explain railroad operations to him so he could understand fully what we were up against." Marshall later was tapped to serve on the United States Supreme Court.

The group was part of the effort that contributed to the success of "Brown vs. Board of Education." Even with the passage of the Civil Rights Act of 1964, acceptance in the workplace was not guaranteed.

"When I finally became an engineer, we had some other employees who would try to shoot us, because they believed we were taking their jobs," Whitaker said.

He was not deterred, however.

"We knew we were doing the right thing," he said. "We had to keep moving forward. We were trying to help ourselves and our families and paving the way for others. Our faith in ourselves and our faith in the Lord kept us going."

Someone else who has kept John Whitaker going is his "greatest joy," his wife, Bess. They met at a party in 1948, and John proposed to her the same night.

"I told him I'd never heard of such a thing," Bess said. "I didn't say yes for a while." They were married in 1949.

Bess Whitaker spoke to those attending the ceremonies in Austell, saying, "John told me that his mother never wanted him to go near the railroad tracks when he was growing up, and look what happened in his career. One day, after he became an engineer, he was operating a train and thinking about how proud she would be of him. He said to himself, 'if my mama could see me now,' as the train traveled through town. With this honor of having such an important facility named after him, just think what his mama would think of him now."

Newsbreak, Web site, calendar, annual report judged best in the industry

NS Newsbreak, Norfolk Southern's Web site, 2001 calendar and 2000 annual report received first-place honors in the Association of Railway Communicators' Distinguished Achievement Awards competition.

The awards, which recognize superior communications achievements in the rail industry, were presented Nov. 13.

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, "Duty.Honor.Country," a feature article published in the November/December 2000 issue of Paces, took first-place honors for 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. The 2000 annual report was produced under the direction of Leanne McGruder, director Investor Relations, Rick Harris, director Corporate Communications, and Mary McNeeley, director Visual Communications.

The Public Relations department of NS produces these products to serve employees, customers, shareholders and other audiences. We welcome your suggestions for improvements.

NS Calendar available for purchase

Norfolk Southern's 2002 wall calendar is available for purchase. It features 15 color photographs taken by railroaders from across the 22-state, 21,800-mile system. From intermodal and coal merchandise trains, in urban and pastoral settings and during all seasons - there's something for everyone who enjoys railroading scenes from the Thoroughbred of Transportation. The 11 x 16.5-inch calendar is pre-punched for easy hanging, and bold numbering makes it easy to read.

Price: $9.95*

For credit card orders, call 1-800-264-4394 between 8:30 a.m. and 5:00 p.m. EST. Or send a check or money order to:

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

*Price includes postage, handling and applicable tax. Allow 5 to 7 days for delivery. All images are copyrighted by Norfolk Southern Corporation. They are for personal use only and not for commercial use.