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NORFOLK SOUTHERN | 2014 Investor and Financial Analyst Conference 1NORFOLK SOUTHERN |2014 Investor and Financial Analyst Conference
MONDAY, SEPTEMBER 22
6:00 p.m. Reception – Courtyard (1st floor)
7:00 p.m. Dinner – Rockefeller Room (2nd floor)
Wick Moorman, Chairman & CEO
Welcoming Remarks
TUESDAY, SEPTEMBER 23
6:45 – 7:45 a.m. Breakfast Buffet, Rockefeller Room (2nd floor)
7:45 a.m. Management Presentations, Grand Ballroom (1st floor)
Jim Squires, President
Introductory Remarks and Overview of Morning Presentations
11:00 a.m. Bus Departures to Rockport Yard for Train Trip
11:30 a.m. Train Trip to Bellevue Yard
12:45 p.m. Arrival at Bellevue Yard
Lunch and Afternoon Presentations, Building E5, Conference Room
Tour of Bellevue Yard
3:15 p.m. Bus Departures to Airport/Hotel
AGENDA
NS Routes
NS Trackage or Haulage
BELLEVUE
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Safety is our top priority atNorfolk Southern. A safety briefing will be provided at the start of the trip to familiarize you with the emergency procedures and precautions on the train.
GETTING ON AND OFF THE TRAIN
Please board and detrain only at the designated doors, the
locations of which will be announced in advance. A staff
member will be at the bottom of the steps to assist you.
WHILE ON BOARD
Be prepared for unexpected stops and starts. When standing,
keep a firm handhold. When walking between cars, always use
caution as the cars may shift due to the train’s motion. Please
be careful with hot drinks, as they could spill, and be aware of
pinch points at foot level between the cars.
Our train is powered by three F-series locomotives. These round-nosed locomotives from an
earlier era have generated widespread interest among employees, rail fans, and photographers.
The F-locomotives were built in the early 1950s by the Electro-Motive Division of General Motors.
They are numbered in the same 4200 series as the F-units once operated by Norfolk Southern
predecessor Southern Railway. The livery features a modern interpretation of the “tuxedo” paint
scheme reminiscent of the first F-unit built in 1939 for Southern Railway.
Today’s F-units were purchased from Kansas City Southern in 2005 and upgraded with new
braking systems, modern safety equipment, increased horsepower, and ditch lights at Juniata
Locomotive Shop in Altoona, Pa. Hundreds of employees had a hand in making the units efficient,
powerful, smooth-running locomotives that should provide good service for years to come.
TRAIN CONSIST (FOR DESCRIPTIONS AND PHOTOS OF THE RAIL CARS, SEE PAGE 22.)
PennsylvaniaNS #7
Office CarF Unit Locomotive F Unit Locomotive F Unit Locomotive
CarolinaNS #2
Office Car
Buena VistaNS #23
Theater Car
OhioNS #20
Office Car
West VirginiaNS #21
Office Car
IndianaNS #12
Sleeper Car
NS #39
Power Car
GeorgiaNS #13
Sleeper Car
MichiganNS #4
Office Car
New YorkNS #26
Rolling Classroom
KentuckyNS #19
Dining-Lounge Car Dome Car
DelawareNS #24
THE TRAIN
STEP
S
STEP
SST
EPS
STEP
S
STEP
S
STEP
S
SAFETY
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Our Route TodayOn today’s trip we’ll travel along our Chicago Line, the highest density segment on the Norfolk
Southern network. Some 100 trains a day operate across this high-speed double-track route
carrying intermodal, metals, automobiles, grain, lumber, coal, chemicals — just about every
commodity that we transport. Departure point for the 53-mile trip is Rockport Yard in Cleveland.
We will travel west to Vermilion, Ohio, where the landscape begins to change from industrial
to rural as we change tracks to the Cleveland District towards Bellevue. At Bellevue, we’ll tour
what will soon be the largest and most modern classification yard on the NS system. Major
improvements under way here have widespread implications for NS’ operational efficiency and
customer service.
Located at the confluence of Norfolk Southern’s busiest mainline routes from New York and Pennsylvania
to Chicago, Cleveland relies on railroads to transport its coal, coke, steel, auto parts, chemicals, salt, stone
and finished products. The 345 employees at NS’ Rockport Yard handle an average of 30 trains daily
for customers such as ArcelorMittal Steel, which recently opened a second blast furnace in Cleveland —
significantly increasing production and rail shipments.
Mechanical employees at the yard perform car and locomotive repairs, and the car shop at Macedonia,
Ohio, gives new life to old rail cars by replacing bulkheads and doors, fixing upwards of 1,200 cars annually.
An NS intermodal terminal at Maple Heights handles consumer goods, including electronics, apparel, and
auto parts, handling a record 118,000 containers in 2013.
CLEVELAND, OHIO
An eastbound coal train leaves Cleveland at sunset.
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A 1967 aerial view of Bellevue Yard shows the newly constructed classification yard on the left, with space reserved for future growth on the right.
Three of the Nickel Plate Railroad’s Berkshire steam locomotives moved freight and passengers through Bellevue at speeds up to 70 mph during the 1940s and 1950s.
Bellevue was founded in 1815
and has been a railroading
center since 1882, when the
New York, Chicago & St. Louis
Railroad built its main line
through town. This is the railroad
that quickly became known as
“The Nickel Plate Road,” as the
quality of its construction was
high, and the entire enterprise
initially had been funded with
cash rather than financed
through banks and brokers.
Incredibly, the new line was 600
miles long (including sidings)
and had been built in 600 days.
Bellevue was selected as a
center for the Nickel Plate’s
car switching, locomotive
maintenance (in both the
steam and diesel eras),
track maintenance, and
transportation offices.
BELLEVUE, OHIO
“The star of our destiny seems
brightly in the ascendant,”
reported the Bellevue Local
News. “Fortune seems to
be pouring her favors onto
the lap of Bellevue with a
generous hand.”
Nickel Plate joined the Norfolk
& Western Railway system
(a Norfolk Southern predecessor)
in 1964, as the modern era of
railroad mergers was getting
under way.
Bellevue is… a key to superior servicefor shippers throughout the nation.
In 1966, NW completed its $13.5
million electronic classification
yard at Bellevue, designed to
anchor the northern part of its
newly expanded system from
astride the carrier’s Buffalo-
to-Chicago mainline. Looking
decades ahead, NS offered a
portent of the yard’s growing
significance when it reported,
“All realize that Bellevue is…
a key to superior service for
shippers throughout the nation.”
At that time, NS set aside enough property to double the size of the
hump yard if business demanded it. More than 45 years later, that
time arrived. In 2012, in response to steady increases in fracking,
steelmaking, automotive production, and other merchandise freight
shipments, NS began construction of an additional 38 classification
tracks as part of a $160 million multi-year expansion
and modernization project.
Today, 100 trains, carrying
vehicles and parts, agricultural
products, and consumer goods,
originate, terminate, and transit
through Bellevue on a typical
day. “The biggest challenge
during the construction has been
to maintain operations,
but the employees here are
second to none, and they were
up to challenge,” said Bellevue
Terminal Superintendent
Will Washington.
The yard is base for some
700 NS employees in the
transportation, mechanical
and engineering departments.
Bellevue Locomotive Shop can
house 14 locomotives under
roof and services and repairs
an average 320 units each
month. Bellevue Car Shop helps
keep NS’ rail car fleet running,
repairing an average 150 cars a
month and handling preventive
maintenance on boxcars for the
auto industry.
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BELLEVUE
BUILDING FOR GROWTHCovering 620 acres and stretching more than 5.5 miles long, Norfolk Southern’s Bellevue Yard will be the largest and most modern classification facility on the NS system and one of the biggest in the United States. The $160 million project to increase capacity at the terminal included construction of 38 new tracks, at left. The expansion, which nearly doubles Bellevue’s yard capability, also is expected to increase operating efficiency across the entire NS network.
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THE BELLEVUE EXPANSION WILL HELP IMPROVE OPERATING EFFICIENCY, SERVICE RELIABILITY, ASSET UTILIZATION, AND STRENGTHEN NORFOLK SOUTHERN’S ENTIRE 22-STATE RAIL NETWORK.
DETROIT
NEW YORK METRO AREA
PHILADELPHIA
ATLANTA
NORFOLK
BIRMINGHAM
MEMPHIS
ST. LOUISKANSASCITY
CHICAGO
RIGHT ASSET, RIGHT PLACE, RIGHT TIME
Norfolk Southern is making infrastructure investments to ensure
that we have the right asset, in the right place, at the right time to
respond to today’s business opportunities while also preparing for
tomorrow’s growth.
With our investment in new capacity at Bellevue, we can build
trains for direct delivery to western gateways and distant points
on our system without making stops at additional rail yards for
switching. Reduced car handlings are expected to cut transit times
and drive operating efficiencies across the entire NS network.
Bellevue is geographically and operationally located at the right spot to leverage our existing infrastructure to position
us for business growth.”
Jim SquiresNS President
“
BELLEVUE
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OPERATING EFFICIENCY
» Pre-blocking cars at Bellevue for longer hauls and direct interchanges with western carriers will reduce switching at other terminals.
CUSTOMER SERVICE
» Customers should see improvements of 1 to 2.3 days in transit times.
ASSET UTILIZATION
» Fewer locomotives will be needed for switching operations.
» Fewer car handlings, car miles and car days
» Increased yard capacity at Bellevue creates additional space at other terminals.
ANTICIPATED BENEFITS
A conductor uses a remote control unit to operate a locomotive that pushes rail cars to the top of the hump in the classification yard.
3,600 CAR-PER-DAY CAPACITY At Bellevue Terminal, rail cars arrive in the receiving yard, below, are sorted by destination onto one of 80 tracks in the classification yard, center, and assembled into outbound trains on the forwarding tracks, left and right.
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» $160 million NS
investment in freight
rail capacity
» 3,600-car per day
classification capacity
(previously 1,800)
» 39 miles of new
track including:
38 classification tracks,
5-mile main line
track around yard,
3 forwarding tracks,
2 receiving tracks,
1 pullback track,
1 hump lead track
INVESTING FOR GROWTH
» 140 computer-
controlled switches
route cars to
classification tracks
by destination
» 11 upgraded control
points enable train
speeds to increase to
25 mph from 10 mph
» 145 miles of new
underground
communication
and signal cable
» 3 new buildings:
a 4-story control
tower, mechanical
and maintenance-of-
way facilities
» 11 100-foot tall high-
mast aluminum light
towers illuminate yard
» 22 diesel-powered
generators provide
back-up power
to ensure reliable
operations
A diamond-shaped crossover at the hump allows rail cars to access any of the 80 classification tracks in the yard.
NS invested in improvements to its Bellevue Mechanical facilities, adding tracks that allow inspections, servicing, fueling, and repairs to be accomplished trackside, which will reduce dwell time. A new vehicle access bridge, above, allows easy access to the car shop.
PROJECT HIGHLIGHTS, BY THE NUMBERS
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Locomotives push rail cars up a slight incline called a hump, where a conductor (left) pulls a pin to separate single cars, or blocks of cars, according to the data on an electronic display.
A computer-controlled system calculates the speed of each car, based on car weight, and varying weather conditions such as precipitation, temperature, and wind. To control speed, retarders (bottom left) similar to automotive disc brakes, slow each car down.
The computer routes carsto specific tracks based on destination, where the cars are assembled into blocks for outbound trains.
BELLEVUE YARD
»
»
»
»
CLASSIFICATION YARD
TO KEEP NS ROLLING
Bellevue Locomotive Shop, at right, supports the 24/7 operations at the yard, servicing, repairing, and maintaining some 320 locomotives a month. On average, the shop uses 1.7 million gallons of fuel, 164 tons of sand and 12,630 gallons of lube oil every month to keep NS’ locomotive fleet rolling.
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TO PITTSBURGH
WHEELING & LAKE ERIE RAILROAD
TO FORT WAYNE, IND.TO CHICAGOTO COLUMBUS, OHIO
TO TOLEDO, OHIOTO CHICAGO
TO SANDUSKY, OHIOTO CLEVELANDTO BELLEVUE YARD
An aerial view of the interchange west of Bellevue Yard.
CONNECTIONS IN ALL DIRECTIONS
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1967 2014
BUILT FOR GROWTH IN THE RIGHT LOCATION
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Like treasured family heirlooms handed down through
generations, Norfolk Southern’s business cars endure, symbolic
of the powerful legacies of predecessor companies that helped
create the rich history and future promise of the American
railroad industry. The following is the history of the 11 passenger
cars that make up our train today, arranged in order from front
(Pennsylvania) to rear (Buena Vista).
NS 7 – PENNSYLVANIA
The Pennsylvania is the oldest car in Norfolk Southern’s fleet.
It was the first all-steel business car built for Norfolk & Western
Railway. After the formation of Norfolk Southern in 1982, the
car was renumbered NS 7 and named Pocahontas. It kept
that name and number until 1988 when Conrail CEO Richard
Sanborn acquired the car and renamed it Boston in honor of his
Massachusetts hometown. In 1999, the car became part of the
NS fleet and renamed Pennsylvania. The car can sleep six, as the
bedrooms each have two beds, including one that folds up into
the ceiling when not in use.
NS 20 – OHIO
The office car Ohio was built in 1920 as a 12-section, one-
drawing-room sleeper. In 1943, Pullman rebuilt it into a
13-section tourist sleeper. Southern Railway bought the car in
1947 and converted it to a dinette-coach the following year. An
article in the Southern Railway Historical Association magazine
Ties reported that the car made a profit of $47 in its first 10 days
of service. Revenue of $431 in food and bar service exceeded
costs of labor, food, spirits, and supplies totaling $384.
CAR DESCRIPTIONS AND PHOTOS
NS 12 – INDIANA
Pullman built NS 12 as a dining car in 1949 for an Norfolk &
Western passenger train called the Powhatan Arrow, a postwar
streamliner. A contest to name the train resulted in 100,000
entries. A retired NW employee submitted the winner and
collected a $500 first prize. His entry honored Native American
Chief Powhatan, a member of the tribe of the same name.
Originally a 33-seat diner, it was converted at Roanoke Car
Shops to an NW staff car. Today, it is an eight-bedroom sleeper,
refurbished in 1989. The names of employees involved in the
restoration are inscribed on a brass plate
inside the car.
NS 13 – GEORGIA
The Georgia began its life as Southern Railway office car No.
18. In 1968, Southern Railway’s Hayne Shop converted the car
to an eight-bedroom, four-bathroom sleeper with eight upper
berths. In 2006, the car was renumbered NS 13 and redesigned
and renovated to have four bedrooms with private baths and an
adjacent exercise room.
NS 4 – MICHIGAN
Pullman built NS 4 as a 12-section, one-drawing-room sleeper
in 1927. Southern Railway acquired the car in 1948 and later
converted it into an office car. Norfolk Southern acquired it in
1999 and officially designated it NS 4 in 2000. As with some
of the other cars, cedar closets and cherry wood bureaus are
among the bedroom appointments of NS 4. The dining room
has two beds that fold into the wall and a typewriter shelf that
folds into the counter – an ingenious space saver. Michigan was
refurbished in 2012 to a four-bedroom executive sleeper with
private bathrooms and a crew room with a bunk.
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NS 2 – CAROLINA
The Carolina was built as a four-bedroom sleeper by the Pullman
Company for Southern Railway in 1928. Over the years, many
of the car’s fixtures have been carefully preserved. The Carolina
was refurbished in early 2013 to a four-bedroom executive
sleeper with private bathrooms and a crew room.
NS 21 – WEST VIRGINIA
Built by Pullman between 1926 and 1929, this former heavy-
weight car, built almost entirely from steel, was converted
into an office car in 1950 at Southern Railway’s Hayne Shop
in Spartanburg, S.C. In 2006-2007, the West Virginia was
converted to a lounge car.
NS 19 – KENTUCKY
Pullman built the Kentucky in October 1949 as the 36-seat diner
Norfolk & Western 494 for service in the Powhatan Arrow, an
NW passenger train. In April 2008, the Kentucky was converted
to a dedicated dining car seating 48.
NS 24 – DELAWARE
NS 24 was built in 1954 as a stainless steel dome lounge for
the Santa Fe Railway passenger train, the San Francisco Chief.
Conrail acquired the car after it served on the Northeast-to-
Florida “Auto-Train.” As part of a complete renovation and
systems upgrade in 2004, the last vestiges of its southwestern
motif were removed.
NS 26 – NEW YORK
The Budd Company built this coach in early 1947 among a
group of cars ordered for service on the New York Central. The
car was used in NYC passenger trains such as the Pacemaker,
Ohio State Limited, and New England States. The car was later
owned by Penn Central, Amtrak, and Conrail. It became part of
Norfolk Southern’s fleet in 1999. A 2012 renovation added new
exterior windows and an audio-visual system that includes a 50-
inch main screen and two 32-inch side wall screens. This rolling
classroom seats 54 for presentations and allows passengers to
enjoy views of the countryside.
NS 23 – BUENA VISTA
The Buena Vista affords a close-up look at the track from a
large window at the observation end of this unique car. Most
often used for official inspection trips, it features 28 theater-
style seats facing the rear window. The car was originally built
as a 16-section sleeper called Cuyama. In 1973, it was converted
to a roadway inspection car and named Buena Vista.
CAR DESCRIPTIONS AND PHOTOS
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