d r a f t 1 coal comparisons third quarter 2012 vs. 2011 f reight r ail s ystem 1 dates back to late...
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D R A
F T
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Coal ComparisonsThird Quarter 2012 vs. 2011
FREIGHT RAIL SYSTEM
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• Dates back to late 1820’s• Today, more than 560
freight railroads operate in the U.S.
• 140,000 mile system• Seven largest (Class I)
railroads account for 67% of total mileage
• Almost entirely privately owned and operated
• Funded by private capitalSource: Association of American Railroads
GENERAL CHARACTERISTICS OF U.S. FREIGHT RAILROADS
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• Vast majority privately-owned, tax-paying firms
• Same company usually owns the track and operates trains over it
• No automatic access to another’s tracks
• Little government funding• Don’t carry passengers• Regulation not as onerous as
it once was, but still substantial (FRA for safety; STB for rates, service, etc.)
Source: Association of American Railroads
ENVIRONMENTAL STEWARD
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• Moves a ton of freight 469 miles per gallon.
• One train = hundreds of trucks.
• 4 times more fuel efficient than trucks.
• Reduces greenhouse gases by 75% compared with trucks.
• Diverting 10% of long-distance truck traffic to rail would be like taking 2 million cars off the road or planting 280 million trees.
Source: Association of American Railroads
KEY FACTORS FAVORABLE TO RAIL
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• Highway congestion• Fuel efficiency• Driver availability and turnover, and aging
truck fleet• Increasing cost structure for trucking• Focus on sustainability
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Coal ComparisonsThird Quarter 2012 vs. 2011
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• Class I railroad
• Safest railroad in North America• Winner of the E.H. Harriman Memorial
Gold Medal Award for 23 consecutive years
• Originator of more finished vehicles shipments than any other North American railroad
• Largest Intermodal franchise in the eastern U.S.
• Largest metals franchise of any Class I railroad
• Annual Capital Investment $2 Billion
NORFOLK SOUTHERN
NS BUSINESS MIX IN 2012
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Agriculture8% MetCon
9% Paper4%
Chemi-cals5%
Au-to
mo-tive5%Coal
20%
In-ter
modal
47%
Agricul-ture13%
MetCon12% Pa
per7%
Chemi-cals14%
Au-to
mo-tive8%
Coal26%
In-ter
modal
20%
Volume Revenue
$11.0 Billion in Revenue 7.1 Million Units
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Coal ComparisonsThird Quarter 2012 vs. 2011
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• Sites and Buildings
• Appropriate Infrastructure• Utility – Electric, Gas, Water, Sewer,
Telecomm• Transportation – Highway, Rail, Port
• Labor Force
• Community Support
• Tax Environment
• Speed to Market
ECONOMIC DEVELOPMENT 101