Second Quarter Earnings Presentation
Norfolk, VA - July 23, 2008

Questions and Answers

(Question) Ken Hoexter, Merrill Lynch. Wick, can you talk a little bit about the coal pricing – obviously the pure pricing being up 9 percent, just such a sizable increase. Can you talk a bit about were there a large percentage of contracts that came up for renewal on top of your annual price inflators? Just such a large and ongoing price increase is great to see, but can you delve into the details there a bit?

(Mr. Moorman) Clearly there are a lot of moving parts in that Ken. I’ll let Don comment on all of the factors that played into this quarter.

(Mr. Seale) Good morning, Ken. It’s Don. As we have indicated in the past, we have about two-thirds of our business under contract, and the average length of term for those contracts now is three years across the book of business. So we have about a third of the two-thirds expiring each year and then the balance of the repricing involves private quotes, etc. So, you put all that together, and this year we will be repricing about 53-54 percent of our total book of business.

In the second quarter, 26 percent of that 54 percent was repriced, and as I mentioned in the first quarter, 40 percent was repriced in the first quarter. So we didn’t really have any unusual volume of activity from a timing perspective in the second quarter. It will be pretty normalized over the rest of the year with the other two quarters. So there won’t be any big increase or decrease in the third and fourth quarter in terms of the amount of repricing activity.

Now, I also mentioned contract escalations, which were stronger in the quarter, and we expect those to continue. And then, of course, the effect of higher fuel surcharge revenue is also in the revenue and RPU.

(Question) Great. That’s wonderful. Jim, just a quick question on the buy back. You bought back $218 million, but it looks like $106 million was issued. I’m guessing that’s because of some of the comp that you talked about as things improved. Will that remain at that level, cancelling out about half of the buy back, or do you think the buy back has a more powerful move as you go forward? Is there something special about second quarter on the payout terms?

(Mr. Squires) The tempo of the share repurchases is going to vary from quarter to quarter. We are certainly committed to the share repurchase program and we have every intention to continue repurchasing at strong levels, and that reflects our commitment to the program and the significant commitment of capital we have made to it in the last couple of years.

(Question) No, I’m not talking about the repurchase. I’m talking about what got issued to cancel out a portion of the repurchase. So there was $106 million worth of stock issued on the cash flow.

(Mr. Squires) There were stock issuances in the quarter reflecting option exercises. That’s certainly true, and so we did see that partial offset to share repurchases. Absolutely.

(Question) So that’s timing of options exercising, not issuing more?

(Mr. Squires) Absolutely. Option exercises and that alone. The timing of it is difficult to forecast. It’s going to vary from quarter to quarter, along with the share repurchases.

(Question) And one technical question: The $9 million interest on tax deficiencies, does that mean you are delaying paying your taxes?

(Mr. Squires) These are timing items, and this reflects the completion of the IRS’ examination of our tax returns for 2004 and 2005, and it’s simply the reversal of interest on tax efficiencies in connection with that.

(Question) Okay, last question is, Don, on some of the stuff you mentioned on the intermodal, on the domestic side, are you seeing the LTLs move away or come back onto the rail? It seems like every time we listen to their calls, they are talking about the desire to get off the rail to keep their networks humming, but it sounded like you are saying you are seeing increase in activity. Is that something of a more recent phenomenon in that picking up?

(Mr. Seale) Yes, within our eastern local network, we are seeing an increased demand for LTL. We are seeing somewhat of a corresponding decrease in parcel volume and empty trailer repositioning, predominantly for UPS. These were empty revenue movements of trailers. But, we are seeing stronger domestic truckload demand east of the Mississippi on our network in general.

(Mr. Moorman) And we think that somewhere in the range of where diesel fuel is selling now and has been for the past couple of months, there is a tipping point of some kind, which just drives the economics back towards rail for a lot of these folks.

(Question) Great. Appreciate the time. Thank you very much. Great quarter.

(Question) John Larkin, Stifel Nicolaus. Good morning gentlemen. To keep your operating ratios steady year-over-year was really impressive. I guess I was kind of thinking that the fuel surcharge lag that I understand you have built into many of your contracts would have provided a pretty substantial headwind. I don’t recall you quantifying the headwind. Could you maybe share with us the impact that delay had in the second quarter?

(Mr. Squires) John, fuel surcharge recovery in the second quarter was $410 million and that was a favorable variance over the second quarter of 2007 which was about equal to the increase in fuel expense in the quarter, so we actually had some favorability as between the two variances there.

I would hasten to add that in prior quarters, we have seen significant under-recovery of the variance, and also the higher petroleum related costs that are not classified as fuel, that rippled through our cost structure. So, it’s a long-term thing. I think we can’t focus on one quarter alone but have to look at this over a reasonable period of time.

(Question) Thank you. And then look at Triple Crown which had a better quarter than one might have guessed given all the trials and tribulations in the auto business. Is this now the kind of environment where you might consider actually growing that very unique operation beyond even perhaps your own network?

(Mr. Seale) John, we continue to focus on growth in Triple Crown. It is a good service product with high demand. We have also been consciously repositioning our market position with Triple Crown away from its dependency on auto parts.

It’s still in the range of the high 20s, 28 percent or 29 percent auto assembly parts, but that’s been declining as we’ve repositioned equipment into consumer products. So, we see good demand for that product because, again, it reflects the fuel efficiency of rail. It’s a door-to-door product, and we are seeing solid demand for the service outside of the auto industry. And of course we are still committed to the auto segment as well, and we are looking at all opportunities as we go forward.

(Mr. Moorman) Longer term, John, you know we’ve invested a lot in the Triple Crown technology. We believe in it. It fits in a very specific market niche that we think we can take advantage of. We’ll expand it as it makes sense, but it’s a very targeted set of services, and we want to be careful that when we expand, we get it right.

(Question) Fair enough. Just maybe one last question on the regulatory front. The STB is taking a look at the concept of perhaps allowing an adjustment in the denominator of the ROIC equation that would adjust for replacement cost. Any sense of how that might be progressing down in Washington?

(Mr. Moorman) I have no sense of how it is progressing, although I think their willingness to take a look at it is a very positive signal. I think it is something that should be looked at. I think it makes a lot of economic sense, given the nature of our business and the capital investment and the lives of our assets. So, we and the rest of the industry are very strongly urging the STB to look at that and think about adjusting the way they look at our returns.

(Question) William Greene, Morgan Stanley. Just one quick follow-up on the pricing question. I assume that there is some mix in your 9 percent comment, so if you excluded heavier cars, the cars that can haul more and longer distance, or the changes in the length of haul, what would sort of the core pricing be?

(Mr. Seale) Bill, we’re looking at the core price for the quarter at 9 percent. The mix was certainly favorable in coal, with longer haul export coal, and we are realizing improved RPU because of higher tons per car, but across the entire book of business, the mix effect was negligible with respect to the quarter. The 9 percent is pure yield out of the 19 percent RPU gain.

(Question) Okay, and then if we look at export coal, how are you thinking about the durability of this? Do you have real good visibility into 2009? Do you have contracts that go out far enough so you know how the volumes will progress? Have you made long-term investments in the business at this point, or are you just letting it ride?

(Mr. Seale) With respect to our export coal, we have a great export coal pier here in Norfolk, Pier 5 and Pier 6. As I mentioned, we expect 20 million tons over this facility this year. That’s about half of the capacity of the pier. We also have additional capacity in terms of rolling stock. So, we have flex, if the coal supply and the orders are there. Now with respect to the orders, we stay in close contact with receivers throughout Europe and Asia, and the input we’re getting is that the export market will continue to be strong through 2010. Beyond 2010, we don’t know. But in 2009 and 2010, we are being told to expect continued demand. And we are planning accordingly.

(Question) And then just one quick question on the personal injury and environmental claims: Was that material in the quarter? How much was that?

(Mr. Squires) That was a favorable claims development of $12 million and we had offsets for that, though, in the form of derailment related expenses, and the two washed. But the casualties and claims component of materials and other was favorable for the quarter.

(Question) Ed Wolfe, Wolfe Research. I think what is striking is how quickly pricing seems to have solidified. It was just a quarter ago when pricing was strong but you were talking about visibility towards 4 percent of real pricing kinds of increases and now all of the sudden it is 9 percent, with some visibility through the end of the year. What really changed in the last three months?

(Mr. Moorman) Ed, I will let Don comment on it, too, but as we go into a year, we are never quite sure, and we don’t like to over-commit on what we are going to do. We’ve clearly got two solid quarters of pricing under our belts this year, and the trends certainly look favorable, so we are now able to give you a clearer picture of the rest of the year. Don?

(Mr. Seale) It is a good question you are asking obviously. When we forecast, and we look out over a year, we know what is going to be repriced. What is difficult to read is how the competitive environment continues to change – where the market will actually be with all the market factors involved – and in that regard, we felt very comfortable with a minimum of 4 percent. And frankly we’ve seen the value of our service product continue to be very good in the marketplace, and our market negotiations are yielding a higher net effect in pricing. We’re very pleased with that.

(Question) So there wasn’t any major contract that came up or anything like that? It was more coming into the year conservative and kind of your best wishes playing out?

(Mr. Seale) We will have to admit to some conservatism there.

(Question) Fair enough.

(Mr. Seale) We occasionally are conservative.

(Question) Don, on the export coal side you talked about Lamberts and the ability to move 40 million tons versus the 20 million where you are if the orders were there and the supply was there. Where do you see the bigger constraints? Are they on the order side or supply side, and how big of constraints are they?

(Mr. Seale) I think demand for U.S. coal, both metallurgical coal and steam coal, is at a very high level in the global market. As you might know, Ed, the Drummond Coal, Columbia, South America, operation is on strike – just went on strike two weeks ago. That is taking coal out of the European market. So, coal is tight worldwide, and I think orders in Europe for met and steam coal will continue to be strong as far out as we can see with the receivers, and that is most of 2009 on into 2010, and perhaps through 2010, as I mentioned earlier. We have better coal supply this year on NS than we had last year from Central Appalachia, because Consol is back in production at Buchanan, and we had Trinity and Massey ramp up their two new operations. I think that we are prepared to handle increased coal for export if the supply and demand match up. The demand is there, but the unknown equation with less visibility is supply. And, I say that because the U.S. utilities will be coming back into the market as well, sometime this year, to begin replenishing stockpiles.

(Question) Is that a guess about supply? Would you say you could grow 5 percent, 10 percent, 20 percent? How much can you grow the exports off of this base of 20 million?

(Mr. Seale) I really can’t hazard a forecast on that, Ed, because again, it’s based on supply. I think the demand is there. It will all be predicated on how much supply is made available.

(Question) Is any of the cap ex that you are bringing into this year to get the tax benefit related to export coal?

(Mr. Moorman) No, not really. The new locomotives will be going into our unit coal train service, so they will be in the coal arena but not specifically dedicated to the export side.

(Question) And last thing on export coal, the 20 million tons at Lambert, what percentage of the total export coal is that?

(Mr. Seale) We expect about 25 million tons of total export business, with the other 5 million tons at the port of Baltimore.

(Question) Can you quantify, Jim, what the impacts are of the Midwest floods, and is there any makeup going on with that right now?

(Mr. Squires) It really was not significant for us. We have quantified that internally, but it really was nothing on the order of what the western roads experienced. Negligible.

(Question) Randy Cousins, BMO Capital Markets. Couple quick questions. You guys have been making some significant capital investments with some major projects. I was just wondering if you can give us an update of how they are developing? Are you getting traffic flow along with plan? And the two that stand out to me are the Meridian Speedway – how much stuff is going over that line, is it on plan? And then the Rickenbacker, I realize has just opened up, but could you give us a sense of how that one is developing up as well?

(Mr. Moorman) Well, a lot of our projects clearly have only been recently announced or under way, like Heartland and Patriot. In terms of the Meridian Speedway, the majority of the work has been done on that corridor to improve capacity and the infrastructure, and the service over that corridor right now is extremely good. As you know, it is the best route from the West Coast ports to the Southeast United States. There have been some puts and takes from a business standpoint, really driven by what Don talked about earlier in terms of some of the West Coast to East Coast shifts. But on the other hand, our domestic business in the Dallas-Atlanta corridor has grown and has exceeded our expectations, and we expect that business to grow. So, all things considered, we are very comfortable with that investment and the way it’s going.

(Question) And with reference to Rickenbacker, how many cars are pulling into it, or how active is it right now, or is it really an ’09 project?

(Mr. Moorman) Rickenbacker is open, we have train service into Rickenbacker. We’re bringing containers in both from the Port of Norfolk and from the West. We built it with capacity, but it’s an active operation and growing on a monthly basis.

(Question) John Barnes - BB&T Capital Markets. Good morning, guys. In terms of the pricing, you had the success. Now, all of the sudden CSX, your competitor, had the small rate case decision go against it by one of their largest shippers. I’m kind of curious, as aggressive pricing is common, especially seeing that 9 percent increase in core pricing on coal, do you feel you are opening yourself up to any of that potential challenge? Or I guess to expand upon that, do you currently have anything, either major or minor, from a rate case standpoint pending against Norfolk Southern by one of your customers?

(Mr. Moorman) We don’t have any rate cases at this time. We are going to proceed along the path of charging for the value of our service, and we think that that’s a high value. We think that we offer a superior alternative in the marketplace, and we will be trying to realize the value of that when we discuss rates with our customers. We also work very hard on customer relationships. We think we have strong relationships with most of the people that we do business with, and we anticipate continuing that as well. So, we will just have to see how this plays out, but we don’t have any rate cases at this time.

(Mr. Seale) Just a quick correction. You mentioned the 9 percent relative to coal. The 9 percent was the yield across the entire book of business.

(Question) My apologies. Sorry about that. Thank you. In terms of the operating ratio, it’s only 10 basis points worse than it was a year ago, and yet fuel prices were up pretty substantially. Do you think at this juncture you’ve pulled out a lot of the costs, and going forward, it is going to be a little bit tougher? You guys are on the cusp of realizing true operating ratio improvement even with this much, much higher fuel cost. I guess I’m just trying to extrapolate that out, what does it mean eventually when volumes are a little bit better and maybe fuel begins to moderate or at least stabilize? Have you re-visited your ultimate operating ratio target, maybe two or three years down the road, given how successful you have been in the face of this massive increase in fuel costs?

(Mr. Moorman) The fact that we’ve been able to hold our operating ratio where it is, of course, is a real tribute to Steve Tobias and his team in terms of the efficiency of the operation that they are running. We never, ever lose sight of operating ratio, and we talk about it a lot. In terms of where we are trying to go with it, we clearly have targets to try to take it down over a period of a few years. We’ll be talking more about what some of those targets are when we start telling you more about our project Track 2012. But it’s not a question of re-evaluating – it’s an indicator that we never lose sight of, and we think that there are still things to be done. We know that we can still run our company more efficiently, and we are committed to doing that.

(Question) Okay. Nice quarter, guys. Thanks for your time.

(Question) Jason Seidl, Dahlman Rose. Thank you, and good morning all. When I’m looking ahead here, obviously we are starting to see a little bit of a pickup in car loadings from you guys, which is probably very much welcome on the railroads, since it seems that’s all you really are missing. But your average employee count is still down a little bit. Should we expect this to ramp up in the back half of the year and into ’09?

(Mr. Moorman) No, as we talked before about in our employee counts, we tried to manage through that in a very thoughtful way when we were ramping up our employee counts to improve service and to handle the additional volume growth. We always said when we need to do something about employee counts, our demographics and attrition rates are such that we can take employee counts down over a reasonable period of time just through a cessation or reduction in hiring and that’s, in fact, what we are doing right now. We are comfortable with the number of employees we have right now on the railroad. We’re comfortable that we can handle more business with our employee count in this range, and you may see it go down a little bit more year-over-year as 2008 progresses, but I expect our employee count to remain roughly in the range that it is now, even if volume picks up for some substantial period of time.

(Question) Okay. Thank you. Follow-up question, you mentioned that you are expecting some utility coal to pick up as the stockpiles are rebuilt. Any sense in terms of how many days’ supply the utilities have right now out East? We have been hearing that some of the utilities in the South Atlantic are fairly low.

(Mr. Seale)  The input that we are getting indicates that northern utility stockpiles are below target, and we are receiving information that the southern utilities have recently moved below target as well. During the second quarter, our ton in the north were up 3 percent, and our tons in the south were down 5 percent. So we expect that trend to reverse with the southern utilities, as they work on replenishing stockpiles. And we expect the positive trend in the North to continue because we’ve secured some new business moving to the Shelocta plant that I previously mentioned, as well as replenishment of stockpiles going forward.

(Question) Tom Wadewitz, JPMorgan. Yes, good morning. Let’s see, I’ve got two different topics I wanted to touch on. First on the coal yield growth, which accelerated pretty sharply. My assumption is that that’s primarily driven by the timing of new export coal contracts being signed on April 1st. Correct me if I’m wrong on that, but are those contracts still one-year agreements, or have you signed up longer agreements than historical?

(Mr. Seale) Tom, with respect to coal overall, we had repricing of contracts in the quarter, including our export, but also the impact of some repricing in utility as well. Secondly, a much stronger escalation in existing contracts, and then the fuel, in addition to that, and then of course the overall length of haul differential on export versus the utility. As I mentioned, for export we are averaging about 440 miles per load, and on utility, which is the much larger book of business for our coal franchise, we average about 280 miles. These combined factors resulted in the 30 percent increase in RPU. With respect to your question on export, we negotiate our export arrangements each year.

(Question) Was export a meaningful factor in that? Obviously, it was one of several, but was that a meaningful contributor to the acceleration, or not really?

(Mr. Seale) It was certainly a meaningful contributor along with those other factors that I’ve mentioned.

(Question) Okay, and it’s one year, so if coal demand is strong again next year you might see a further boost again next April?

(Mr. Seale) Well, we always follow the market and we’re looking at the transportation marketplace, so we’ll just have to wait and see.

(Question) Okay. But you get another shot at it given that you stuck with the one-year approach. Transitioning to intermodal – it’s been a while since you have seen growth on the intermodal side, obviously international has been a strong headwind – do you think that you’re on the cusp of seeing a pretty good transition to some stronger volume growth there? And also you commented on the benefit from fuel, but what about tighter truckload capacity? It does seem like you’ve seen some capacity rationalization in truckload.

(Mr. Seale) Wick mentioned the higher fuel costs for trucking and the impact that that’s having in terms of conversion to rail. You might have noted, Tom, in J.B. Hunt’s second quarter announcement that they advised that they were increasing intermodal capacity by 10 percent, and we’re seeing J.B. Hunt within the East continue to take a very aggressive posture on converting highway traffic over to rail intermodal. We’re seeing others, like U.S. Express, do the same thing. So, we’re seeing double digit growth within our Eastern local network. Also, at the Rickenbacker Logistics Center, which I mentioned in the prepared comments, we’re seeing better than expected activity at that new terminal, to the extent that the local airport authority there is accelerating some highway work to improve the ingress and egress at that facility. That work is being done in advance of the schedule because of growth there.

(Question) Do you think it is likely though that you see in the total intermodal volumes a transition to some meaningful growth there, with international maybe as less of a headwind?

(Mr. Seale) As we have lapped some international numbers, and with the more robust environment we see on the domestic side of our business, I think it’s certainly a plausible scenario that we’re going to see year-over-year volume growth into the second half.

(Question) Last one. How much do you think truck capacity matters? You can choose intermodal because of price, or you can choose it as a capacity play. Do you think there is much sensitivity in terms of if truckload capacity gets tighter that you could see further flow to you on the intermodal side?

(Mr. Seale) I think that is a good point, Tom. We know that tractor sales are not up, they’re down. Truckload capacity, with respect to repositioning empties for loads in this market, is very constrained because of high diesel fuel prices. So, I think the table is set quite well for intermodal growth in the U.S., and in particular our network, because we’ve planned for it.

(Question) Great. Well, congratulations on the strong results.

(Question) Gary Chase, Lehman Brothers. Don, wondered if you could clarify something for us. You mentioned escalation, better than expected escalation as a factor of what drove that 9 percent outcome. Was there just RCAF, or is there another story there? And you emphasized it when you were answering a question specific to coal pricing. Was that a material factor outside of the coal segment?

(Mr. Seale) Certainly on some contract escalation, the RCAF was involved. The RCAF was robust in the second quarter, but we’ve also converted a lot of our contracts to fixed contract escalators, fixed percentages, and the blend of RCAF plus the fixed percentage escalators, are stronger going forward, and we saw the result of that in the second quarter.

(Question) But I guess I’m still trying to get my arms around some of the comments that you were making earlier when you were talking about the 9 percent and the fact that you had to admit to a little bit of conservatism. I’m trying to get my arms around whether the market has also moved this last quarter, so some of that might have been conservatism, but some of it might also be the pricing environment actually is accelerating. Is there any way to think about how much of that 9 percent versus the 4 was actual market movement instead of you being conservative?

(Mr. Seale) Well, first of all, with respect to the 4 percent at the beginning of the year, you will recall we termed later as a minimum of 4 percent, which gave us latitude to go above 4. But, we have seen a better market for transportation for our rail service than we had projected late in the second half of last year when we put our forecast together. Having realized 7 percent in the first quarter, and 9 percent in the second quarter, we’re comfortable with that range going forward for the balance of the year. Certainly, we see transportation demand in certain sectors continuing to be very robust, coal being one of them, agriculture being another. The metals market is still strong, and domestic intermodal is still strong.

(Question) So, there is an escalation component and a market component?

(Mr. Seale) That’s correct.

(Question) Just one for Wick. UPS mentioned this yesterday, you noted in your prepared remarks the thought that people would be re-thinking supply chains here, given fuel prices and the fact that transportation costs have increased pretty substantially as a result of that. As you look out over the next several years, there are some positives that you mentioned in truck conversion. Are there some potential offsets to that? Do you think it will change your cap ex outlook, either in terms of the dollars you’ll need to spend up or down, and will it shift some of the priorities that you have?

(Mr. Moorman) You know, that’s a great question. Our crystal ball is always as cloudy as anyone else’s, but I have to say that I think right now the projects that we are working on and the way we are addressing the marketplace is something that we’re all very comfortable with in terms of where we think that the markets are headed. The shift to domestic intermodal, which we keep talking about, I think is going to be one of the primary outcomes of this re-evaluation of supply chains, and I think our franchise with what we are doing with it to strengthen it right now will be particularly well-situated to take advantage of that. So, we expect to continue to invest in the network to strengthen the franchise. I think we’re nimble enough so that if we start to see another trend emerge, we can adjust, but right now I think the course we are on is something we are very comfortable with.

(Question) Matt Troy, Citigroup. Following up on the intermodal discussion, I was wondering what you are hearing from the shipping lines, the international shipping lines, with respect to peak season? They generally tend to be creatures of habit, but we are seeing them change some behavior – slow steaming and changing frequencies. I was wondering if you could talk about what you are hearing in the near term about the peak season taking shape, and too, how sticky some of the business that might be getting diverted from the West Coast ports might be?

(Mr. Seale) With respect to the first part of your question, Matt, dealing with an intermodal or international peak in the fall, we will probably see some up-tick in demand. But I don’t think we will see anything that looks like a traditional peak that we saw several years ago. Inventory and supply chain management has changed since then, and I think we see more of a steady state flow of goods through the summer into the fall now for the retail season. That seems to have fundamentally changed, so we don’t expect a big fall peak in intermodal. We do expect a good grain crop, even with the flooding. The latest USDA projections are fairly positive with respect to the corn and soybean crop. We will see the normal increase in demand in that sector. Now with respect to the all-water service, repeat your question please because I want to make sure I got your question correct.

(Question) I’m focusing on box trade, container counts, handled by Norfolk and the East Coast railroads, and basically what I’m trying to get a sense of is, if the shipping lines may be diverting international traffic from the West Coast ports to the East Coast ports, one, is it possible to quantify what that diversion is, what it means to you folks, and two, how sticky might some of that business be if people on the international front are evaluating import and export destinations?

(Mr. Seale) We do quantify that, and as we’ve seen our business shift where 54 percent of our containerized freight is coming through East Coast ports, obviously, we watch that very, very keenly. Five years ago it was only 20 percent, so it’s grown that much. We are also looking at how we serve those ports, and of course Heartland Corridor service from the Port of Norfolk to Rickenbacker and the Ohio Valley, in terms of a new logistics center terminus, is a great example of that. So, we have been planning for this shift because, frankly, the Asian steamship lines for several years – for the last five to six years – have been telling us that we should plan to see this shift taking place. And we are seeing it unfold.

Now, with respect to the traffic, the Port of Savannah has benefited significantly from that trend. The Port of Hampton Roads, Norfolk, certainly has benefited, and we’ve seen New York pick up additional traffic as well. We are running large, very efficient train service from Savannah to Atlanta, for example, and we’re beginning to see some demand go west of Atlanta from Savannah. At some point in the future, I would not be surprised to see East Coast port business coming through Savannah, for example, going back as far as Memphis. We’ll probably see Norfolk traffic going back as far back as Chicago.

(Question) Is there any way to quantify in the last six months, has there been an acceleration of the diversion from other ports, be it West Coast or otherwise, to your system, or is it too difficult to disaggregate in terms of the longer-term trend?

(Mr. Seale) Our numbers indicate that from the first quarter to the second quarter we actually saw an acceleration of all water conversion to the East Coast ports.

(Question) Can you put a number to that or is that something you don’t want to share?

(Mr. Seale) I would prefer the shipping lines talk about that, because as we’ve pointed out in the past, we are working to promote traffic from both coasts, and we are positioning our ramps and our logistics centers where we can handle the traffic either through East Coast ports or West Coast ports. And it is up to the shipping lines to make the decision, along with their customers, as to which port of entry they use for their supply chain needs. We’re neutral with respect to that. We just want to be in position to serve either coast.

(Mr. Moorman) Thank you very much, everyone. We look forward to talking to you at the end of the third quarter.

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