Crew customer service teams score victories

An effort begun by the Brotherhood of Locomotive Engineers to open lines of communication between train crews and customers has become a way of doing business at Norfolk Southern.

Mike Adams, NS conductor

An example of this team effort is at the General Motors Assembly Plant at Doraville, Ga. Mike Adams, a conductor who served the plant, had some ideas to improve the effectiveness of regular customer meetings held by train crew customer service teams.

The Doraville team was invited to Norfolk to talk to senior management about their experiences. That conversation paid off. Team membership was expanded to include marketing, central yard operations representatives and others who could provide expertise to address the customer's service issues. A form was designed as a meeting agenda for team visits. A toll-free number was set up for visiting teams to get quick answers. A follow-up process also was put in place.

"Mike gave us a different perspective on our customer service improvement efforts," said Debbie Butler, vice president customer service. "We know our train crews are often the first line of defense in identifying specific service issues, and the team's input gave us a more effective way to address those issues."

Butler said 112 teams have made more than 875 customer visits.

"These teams have identified more than 700 service issues, and we've been able to resolve 95 percent of them," Butler said. " The Doraville team brought us some good ideas that, working together, we have been able to make better. That's the kind of commitment we need to make customer service as important as safety."

Norfolk Southern reports third-quarter 2002 results

Norfolk Southern Corporation reported third-quarter net income of $126 million, or $0.32 per diluted share, an increase of 59 percent, compared with net income of $79 million, or $0.20 per diluted share, in the third quarter of 2001.

"We are encouraged with our results and another quarter of year-over-year improvement in our financial performance," said Henry C. Wolf, vice chairman and chief financial officer. "We will continue to take steps to improve our service consistency and reliability while at the same time grow our revenue base and achieve greater productivity."

For the first nine months, net income increased 27 percent to $331 million, or $0.85 per diluted share, compared with net income of $260 million, or $0.67 per diluted share, in the same period a year earlier. Net income during the first nine months of 2001 included an after-tax gain of $13 million, or $0.03 per share from the 1998 sale of a former trucking subsidiary.

Third-quarter railway operating revenues rose 6 percent to $1.60 billion compared with third quarter 2001. Year-to-date railway operating revenues of $4.69 billion were up 1 percent compared to the same period a year earlier.

Third-quarter general merchandise revenues of $917 million improved 6 percent compared to the same period of 2001. All market groups reported increases, led by automotive and metals. For the first nine months, general merchandise revenues increased 3 percent to $2.73 billion compared with the year-earlier period.

Intermodal revenues of $310 million were the highest of any quarter in Norfolk Southern's history and climbed 11 percent compared to the third quarter of 2001. For the first nine months, intermodal revenues rose 5 percent to $875 million compared with the same period of 2001. The revenue growth reflects increases in both international and domestic business, particularly converting traffic from the highway.

Coal revenues improved 1 percent to $371 million in the quarter compared to a weak third quarter of 2001 but declined 6 percent to $1.08 billion in year-over-year performance.

Railway operating expenses for the quarter increased 2 percent to $1.29 billion compared to the third quarter 2001 but decreased 2 percent to $3.82 billion for the first nine months compared to the same period a year earlier.

For the quarter, the railway operating ratio improved 3.3 percentage points to 80.5 percent compared with 83.8 percent for the same period of 2001. For the first nine months, the operating ratio improved 2.8 percentage points to 81.4 percent compared with 84.2 percent during the same period of 2001.

NS changes expected rate of return
on pension plan assets

Norfolk Southern Corporation announced that it has decreased to 9 percent its expected long-term rate of return assumption on pension plan assets for purposes of pension accounting under SFAS 87. The change is based on the long-term market outlook and will result in a noncash increase of approximately $10 million in pre-tax compensation and benefits expense in fourth quarter 2002.

Why is Norfolk Southern reducing its expected rate of return for its pension plan?

The company has taken this action because the long-term outlook for returns in the stock market has moderated somewhat. In accounting for pensions under certain accounting rules, companies have to make assumptions regarding expected rate of return on plan assets, discount rates and rates of salary increases, among other things.

How will it affect earnings?

It will decrease Norfolk Southern's 2002 pension credit by $10 million pre-tax, which is about $6 million after-tax.

What effect will it have on my pension?

None. This has nothing to do with the benefits paid out of the plan. The NS pension plan has been, and continues to be, fully funded.

Elkhart Mechanical Department
marks injury-free milestone

A celebration honored employees of the Elkhart Mechanical Department who worked one million employee hours injury-free. The car department has not recorded an injury since April 1998 and the locomotive department since August 1998.

"This is an accomplishment that is rarely achieved in our industry, and it is especially gratifying to see it in a location that is critical to our job performance," said Mark Manion, vice president transportation services and mechanical. "The only other location able to achieve this feat was the Chattanooga Diesel Shop earlier this year."

Employees were treated to a dinner and a breakfast in late October to ensure everyone had the opportunity to enjoy the occasion.

"We are so proud of this major success," said Joe Flynn, division manager mechanical for the Dearborn Division. "Our employees can take great satisfaction in knowing what a victory they have achieved. I know we will continue to strive to be the best."

Engineer helps others "get real" about safety

When Don Nauman talks about safety, people listen. The Norfolk Southern locomotive engineer in Waynesboro, Va., dubbed himself a "safety ranger" a number of years ago, and his enthusiasm for making his workplace safer has inspired others.

"I had a few close calls, and it really opened my eyes," Nauman said. "I wanted to make a difference by making the railroad safer. Calling myself a safety ranger made people stop, take note and want to be part of the team."

Nauman was the inspiration for a larger effort to establish safety rangers across the system, said Haskel Stanback, assistant vice president safety. He cited Nauman's practice of taking time to work with less experienced employees to help them better understand how to work safely and within the rules.

"We used Don's idea to create a broad team effort to increase focus on and awareness of safety issues in the workplace," Stanback said. "It has an element of fun, but the message is a serious one."

The systemwide effort focuses on communication to make sure employees understand the job they have to do before starting out, according to Stanback. He said all workplace injuries are preventable if employees take the time to understand why a job must be done a particular way.

"Each one of us has to take responsibility for working safely," Stanback said. "It starts with a clear understanding of the task and how to accomplish it safely. We have operating rules that clearly state the way we must work to be safe on the job."

Nauman agrees, and he likens the NS Operating Rule Book to a team's playbook.

"We're all on the same team, and our rule book is like our play book. You wouldn't think of going out on the playing field without a clear plan as to how you were going to win the game. Why would you start your job without a plan to be safe?" he said.

Nauman said he likes to help others "get real" about safety. "Real trains, real people, real danger, so to be real, be a safety ranger," he said.

Stanback said Nauman's enthusiasm has inspired many.

"People know Don even if they have never met him in person," he said. "He's proof that one person can make a real difference. I hope that more people like him are willing to bring new ideas to the table. That's how we'll achieve our goal of zero incidents and zero injuries."

Norris Yard employees mark 50th anniversary

Norfolk Southern's Ernest Norris Yard in Birmingham, Ala., recently celebrated 50 years of service to NS and its predecessors.

The yard opened for business on Sept. 9, 1952, after more than 21 months of construction. With its automatic switches, car retarders and other mechanical and electrical devices, it was touted when it opened as the most modern freight car classification yard in the world.

Employees at Norris Yard received this commemorative medallion on a key chain.

Physically, not much has changed in 50 years; however, the productivity and efficiency of the yard has improved, along with the railroad industry. Jay Traywick, assistant terminal superintendent, said operations are more computerized with the introduction of the Thoroughbred Yard Enterprise System, or TYES.

The yard remains an important component on NS' system, handling more than 2,200 cars daily. Modern technology is now combined with NS' Thoroughbred Operating Plan to provide better service to customers.

"We match the right car with the right train and send them out in less than 23 hours," said Mel Crawley, Alabama Division superintendent. "We're proud of the contribution we make to NS' success."

The 50th anniversary celebration included a steak dinner for all 500 employees. Those attending received a commemorative gift and a brochure featuring photographs of the yard from 1952 and today.

Intermodal group declares peak time all the time

Norfolk Southern's intermodal group is raising the bar for flawless performance on United Parcel Service shipments.

"Our goal is to handle every load we receive from UPS without a service failure year-round, not just during the UPS Peak Season," said Randy Survant, group manager domestic marketing and performance. "Therefore, our new slogan for handling UPS is: Peak Time! - All the Time!"

Survant said NS currently holds the best UPS performance record for the big four (NS, BNSF, CSX, and UP) Class I railroads with an 80 percent service improvement year-over-year. He attributed the gain to communication, teamwork and better train performance.

"We're running a scheduled railroad for almost all commodities and markets with the Thoroughbred Operating Plan in place," he said. "That's made a real difference in our ability to better serve our customer.

"We've done well during the traditional peak time in previous years, so we believe we now can reach higher and achieve flawless service every time," Survant said.

What will it take to reach that goal? Survant says commitment, communication and teamwork are the keys to success.

To kick off the 2002 UPS peak-season effort, UPS representatives met with NS representatives from many parts of the company, including senior management.

"We've assembled a team of people who absolutely are committed to achieving this goal," he said. "Working together, we'll do it."

Historic marker commemorates 150
years of Roanoke rail service

A new bronze plaque in downtown Roanoke marks the location where the first train arrived 150 years ago, when the city was just a hamlet by the name of Big Lick.

"The people who made possible the arrival of that first train in 1852 were visionaries indeed, but of course they had no way of knowing just how big their enterprise would become," said Ike Prillaman, Norfolk Southern vice chairman and chief marketing officer, in commemorating the event Nov. 1. "They and thousands of railway employees who followed them inspired the development of a major eastern transportation company with global reach," Prillaman said. Roanoke became "the commercial and social center for the western part of the commonwealth and beyond."

Prillaman, a Roanoke native, helped unveil the marker, erected on the Rail Walk along Norfolk Avenue between Jefferson and First Streets. During a luncheon following the plaque unveiling, he said the event celebrates "the close bond and the long-term partnership enjoyed by the people of the Roanoke Valley and Norfolk Southern.

"One hundred fifty years ago, it was a single train. Today, Norfolk Southern operates an average of 80 trains a day in and out of Roanoke. The area is home to some 1,800 Norfolk Southern employees and more than 1,600 retirees," Prillaman said.

Find the perfect gift at the Company Store

Are you looking for that perfect holiday gift for your favorite railroader? Look no further than the Company Store, Norfolk Southern's online merchandise catalogue.

Clothing, watches, golf accessories and other items bearing the NS logo are available. Check out all the merchandise on the Company Store.