Norfolk Southern Investor and Financial Analyst Conference September 23, 2014 Mark D. Manion Executive Vice President and Chief Operating Officer
Safety First
Customer Service and Productivity are Key
Connected - Capacity and Capability
Capacity and Capability John Friedmann Ed Boyle Vice President Assistant Vice President Strategic Planning Communications & Signals
̶ ̶ ̶ Topics Measuring Growth Capacity Solutions Case Studies Illinois Basin Coal North-South Pipeline Chicago Gateway
Tonnage Growth - 2006 vs. 2013 Detroit Chicago Cleveland Harrisburg Cincinnati Kansas City St. Louis Norfolk Memphis Atlanta Core Network Lines with growth greater than 10 MGT Jacksonville New Orleans
Capacity Principles First, improve the process “Just in time” capacity additions Minimize investment risk
The NS Capacity Process Traffic Forecast Capacity Need Scoping • Strategic Planning • Transportation • Marketing • Other stakeholders
The NS Capacity Process Traffic Forecast Capacity Need Process Scoping Improvement • Strategic Planning • Transportation • Marketing • Other stakeholders
The NS Capacity Process • Industrial Engineering Traffic Forecast • Design Engineering • Financial Planning • Transportation Capacity Need • Marketing Process Scoping Analysis Improvement • Strategic Planning • Transportation • Marketing • Other stakeholders
The NS Capacity Process • Industrial Engineering Traffic Forecast • Design Engineering • Financial Planning Capacity • Transportation in Place Capacity Need • Marketing Process Project Scoping Analysis Build Out Improvement Approval • Strategic Planning • Design & • Design & Construction • Transportation Construction • Marketing • Other stakeholders
LineMAX NS Capacity Analyzer
Illinois Basin Coal Growth Cumulative tonnage growth on NS 175% 152% 150% 125% 100% 75% 65% 48% 50% 26% 25% 0% 2010 2011 2012 2013 2014
Decatur Indianapolis Cincinnati LineMAX St. Louisville Princeton, NS Capacity Analyzer Louis Indiana
Increasing Capacity Mine 2 radio-controlled switches Milepost Milepost Siding Siding Extension 150 170 10,600 feet 4,000 feet
Improving Fluidity 100% 80% 60% DELAY 40% 20% With New Capacity 0% Without New Capacity -20% -40%
Decatur Indianapolis Cincinnati LineMAX Princeton, St. Louisville NS Capacity Analyzer Indiana Louis
Beck Siding – Gibson County Coal Beck Siding – Gibson County Coal W
Beck Siding – Gibson County Coal W
Beck Siding – Gibson County Coal W
Beck Siding – Gibson County Coal W
Beck Siding
Beck Siding
Beck Siding
Princeton, IN – Gibson County Coal
Princeton, IN – Coal Mine Switches and Derails N Install Radio Controlled Derail Install Radio Controlled Derail To MP 160W Install Radio W-Line Controlled Switches To St. Louis To Louisville
North – South Pipeline Norfolk Southern’s Chicago Cleveland primary route & Detroit & Bellevue connecting the Midwest and the Kansas City Cincinnati & St. Louis South 340 miles 60+ trains/day Chattanooga Birmingham Atlanta & & New Orleans Jacksonville
Filling the Gap Milepost Milepost Milepost 140 160 180 15 miles 23 miles To Cincinnati To Chattanooga
Filling the Gap Milepost Milepost Milepost 140 160 180 4 Miles 42 Miles To Cincinnati To Chattanooga
Improving Performance 30% 20% 10% DELAY With New Capacity 0% Without New Capacity -10% -20% -30%
Conditions Prior to Improvements Milepost Milepost Milepost 140 160 180 15 miles 23 miles To Cincinnati To Chattanooga
2 nd Main Extension Milepost Milepost Milepost 140 160 180 4 Miles 42 Miles To Cincinnati To Chattanooga
Grove, KY – Rock Cut
Grove, KY
Grove, KY – Rock Cut
Grove, KY – Pitman Creek Bridge
Grove, KY – Pitman Creek Bridge
Grove, KY
Grove, KY
Chicago Gateway Chicago Toledo Cleveland The Chicago Line High speed, double track+ route Norfolk Southern’s busiest line All traffic types
Chicago Gateway Chicago Toledo Cleveland Bellevue Ft. Wayne The B-Line Single track with sidings Traffic Control Less traffic than the Chicago Line
Chicago Gateway Elkhart Butler Chicago Toledo Cleveland Bellevue Ft. Wayne An Integrated Network Multiple combinations of primary routes Connectors give redundancy and flexibility
Supporting Chicago Elkhart Butler Chicago Toledo Cleveland Bellevue Ft. Wayne Chicago capacity expansion
Supporting Merchandise Volumes Elkhart Butler Chicago Toledo Cleveland Bellevue Ft. Wayne Bellevue hump yard expansion
Overall: $500+ million investment Elkhart Butler Chicago Toledo Cleveland Bellevue Ft. Wayne 18 projects between Chicago and Cleveland
Goshen, IN – Extend Siding 87+/- Miles To Chicago Chicago Main Lines Goshen 3.2 Miles Dunlap To Toledo Elkhart Yard To Cincinnati CSX N CF&E
Goshen, IN – Extend Siding 87+/- Miles To Chicago Chicago Main Lines Goshen Dunlap To Toledo Elkhart Yard To Cincinnati CSX N CF&E
Indiana Gateway Project – Existing 509 505 500 495 490 485 480 ILLINOIS INDIANA Indiana Harbor Canal Bascule Drawspan (Porter) CP 507 CP 506 CP 505 CP 503 CP 502 CP 501 CP 497 CP 491 CP 487 CP 485 CP 483 CP 482 (Hick) IHB AMTRAK Millers CSX IHB Colehour Yard N W W E S
Indiana Gateway Project – Planned 509 505 500 495 490 485 480 IGP#1 Burdick ILLINOIS INDIANA IGP#2 (AMTRAK) Porter Indiana Harbor Canal Bascule Drawspan CP 507 CP 506 CP 503 CP 502 CP 501 CP 500 CP 498 CP 497 CP 494 CP 492 CP 490 CP 487 CP 485 CP 483 CP 482 CP 479 (Hick) Roll & Hold IHB AMTRAK Millers CSX IHB Colehour Yard N Indiana Gateway Project - Planned W E S
Chicago IMF and Englewood Flyover Ashland Avenue Yard LAKE MICHIGAN Englewood Flyover Brighton Park NS 63 rd ST NS 47 th ST NS Colehour NS Calumet Torrence Ave NS Hegewisch Gary /Chicago International Airport NS Main Metra Lines
Chicago – 63 rd Street Intermodal Facility
Chicago – 47 th St Expansion & Echo Connection Englewood Flyover 47 th ST IMF Support Yard Extension Echo Connection 51 st Street Bridge Replacement Garfield Lot Parking (Complete)
Chicago – 47 th Street Intermodal Facility
47 th and 63 rd St Intermodal Facilities NS 47 th ST Metra Line Englewood Flyover NS 63 rd ST NS Main Metra Lines
Englewood Metra Flyover NS Metra Tracks To Be Removed
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