Short lines offer NS new opportunities

The Aberdeen, Carolina and Western Railway Company is one of NS' short line partners.

Think back to the America before the interstate highway system was built. While there were plenty of smaller roads connecting towns and metropolitan areas, there were no freeways or highways to easily and quickly move people and products from region to region.

Conversely, imagine a country full of interstate highways, with plenty of long-distance routes opening up markets and opportunities, but without secondary roads linking towns to the superhighways.

While each has its merits, it is only when the two systems work together that they best serve everyone's needs.

The same can be said for the relationship between Norfolk Southern and its short line rail partners. Like so many local roads, short lines offer NS entry into smaller markets and the customers there, while NS provides short lines and local businesses a gateway to other regions.

"NS has certain inherent strengths as do the short lines," says John Kraemer, general manager Short Line Marketing. "Both of us want to provide our customers the greatest reach to suppliers and a distribution network. We want to provide the best transportation service, the highest level of safety, customer satisfaction and the best value.

"To accomplish this, we combine the greatest strengths of a short line with our strengths to ensure that the customer wants to ship by rail."

NS works with more than 200 short lines that handle about 20 percent of NS traffic.

"There is nothing more important in our day-to-day activities than the relationships we enjoy with our Class I carriers," said Frank K. Turner, president of the American Short Line and Regional Railroad Association.

"NS has a strong short line service group, and we work closely with NS senior management. The fact that these senior managers make themselves available to our members is very meaningful. It's a key to our mutual success and to establishing strong relationships."

"The key ingredient is communication," said Kraemer. "If we can't talk, we're not going to do business very well."

"When you give people information, you build trust," said Bill Strawn, president of the Columbus Ohio River Rail Road. "NS did that with us and with its customers. They didn't try to hide the problems. They said 'Here's what's wrong. Here's what we're doing to fix it. And here are some alternatives for you.' "

After June 1, 1999, short lines assisted NS in creating alternative routes to ease congestion. This support strengthened a relationship that was on the right track after a team ironed out an historic Railroad Industry Agreement last year.

"The goal of this agreement is to try to better define the relationship between the short line and major carrier," explained Turner. "It proposes ideas from car supply to alternate routing, helping establish new businesses and breaking down some of the barriers that we have had between us. It also defines an Interchange Service Agreement, which outlines the standards of service that would exist between small and large carriers throughout the industry.

"NS took the lead in producing this agreement. That means a lot, and is very valuable to our industry. They've been proactive and have worked hard to implement additional phases of it."

The NS Short Line Marketing team, with the Strategic Planning and Sales departments, began in November to meet individually with each short line. The goal was to build even better relationships. Topics addressed in these meetings are safety, rates prices, customer service, business development, problem resolution and maintaining good communication.

"These relationships are going to be tested in the future," said Steve Eisenach, director Strategic Planning. "We will continue to have some congestion. We are doing a lot of route development and planning.

"Short lines have issues they are facing as well. Together, we are developing a strong dialogue to work out business plans and traffic forecasts."

The joining of country road and interstate highway created a world of opportunities for Americans. So, too, has the alliance between NS and its short line partners.

"These partnerships have created a spirit of teamwork and determination that benefits customers, both theirs and ours," said Kraemer.