Analyst Conference September 23, 2014 Mark D. Manion Executive - - PowerPoint PPT Presentation

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Analyst Conference September 23, 2014 Mark D. Manion Executive - - PowerPoint PPT Presentation

Jan 08, 2024 24 likes •605 views

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

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Norfolk Southern Investor and Financial Analyst Conference

September 23, 2014 Mark D. Manion Executive Vice President and Chief Operating Officer

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Safety First

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Customer Service and Productivity are Key

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Connected - Capacity and Capability

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Capacity and Capability

John Friedmann

Vice President Strategic Planning

Ed Boyle

Assistant Vice President Communications & Signals

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Topics

  • Measuring Growth
  • Capacity Solutions
  • Case Studies

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Illinois Basin Coal

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North-South Pipeline

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Chicago Gateway

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Tonnage Growth - 2006 vs. 2013

Chicago

  • St. Louis

Norfolk Harrisburg Atlanta Cincinnati Cleveland

Core Network Lines with growth greater than 10 MGT

Detroit Kansas City Memphis New Orleans Jacksonville

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Capacity Principles

  • First, improve the process
  • “Just in time” capacity additions
  • Minimize investment risk
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The NS Capacity Process

  • Strategic Planning
  • Transportation
  • Marketing
  • Other stakeholders

Scoping

Traffic Forecast

Capacity Need

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The NS Capacity Process

  • Strategic Planning
  • Transportation
  • Marketing
  • Other stakeholders

Scoping

Traffic Forecast

Capacity Need Process Improvement

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The NS Capacity Process

  • Strategic Planning
  • Transportation
  • Marketing
  • Other stakeholders

Scoping Analysis Process Improvement

Traffic Forecast

  • Industrial Engineering
  • Design Engineering
  • Financial Planning
  • Transportation
  • Marketing

Capacity Need

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The NS Capacity Process

  • Strategic Planning
  • Transportation
  • Marketing
  • Other stakeholders

Scoping Analysis Process Improvement Project Approval Build Out

  • Design &

Construction Traffic Forecast

  • Industrial Engineering
  • Design Engineering
  • Financial Planning
  • Transportation
  • Marketing

Capacity in Place

Capacity Need

  • Design &

Construction

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LineMAX

NS Capacity Analyzer

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Illinois Basin Coal Growth

26% 48% 65% 152%

0% 25% 50% 75% 100% 125% 150% 175% 2010 2011 2012 2013 2014 Cumulative tonnage growth on NS

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Decatur

LineMAX

NS Capacity Analyzer St. Louis

Indianapolis

Princeton, Indiana

Cincinnati Louisville

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Increasing Capacity

Milepost 150

Siding 10,600 feet Siding Extension 4,000 feet Mine 2 radio-controlled switches

Milepost 170

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Improving Fluidity

  • 40%
  • 20%

0% 20% 40% 60% 80% 100%

Without New Capacity With New Capacity

DELAY

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Decatur

LineMAX

NS Capacity Analyzer St. Louis

Indianapolis

Princeton, Indiana

Cincinnati Louisville

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Beck Siding – Gibson County Coal

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Beck Siding – Gibson County Coal

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Beck Siding – Gibson County Coal

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W

Beck Siding – Gibson County Coal

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W

Beck Siding – Gibson County Coal

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Beck Siding

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Beck Siding

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Beck Siding

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Princeton, IN – Gibson County Coal

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Install Radio Controlled Derail Install Radio Controlled Derail Install Radio Controlled Switches

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W-Line To MP 160W To St. Louis To Louisville

Princeton, IN – Coal Mine Switches and Derails

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North – South Pipeline

Cincinnati Chicago & Detroit Cleveland & Bellevue Chattanooga Kansas City & St. Louis Birmingham & New Orleans Atlanta & Jacksonville

  • Norfolk Southern’s

primary route connecting the Midwest and the South

  • 340 miles
  • 60+ trains/day
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Milepost 160 Milepost 180 Milepost 140

23 miles 15 miles

Filling the Gap

To Cincinnati To Chattanooga

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Milepost 160 Milepost 180 Milepost 140

4 Miles

42 Miles

Filling the Gap

To Cincinnati To Chattanooga

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Improving Performance

  • 30%
  • 20%
  • 10%

0% 10% 20% 30%

Without New Capacity With New Capacity

DELAY

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Milepost 160 Milepost 180 Milepost 140

23 miles 15 miles

Conditions Prior to Improvements

To Cincinnati To Chattanooga

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Milepost 160 Milepost 180 Milepost 140

4 Miles

42 Miles

2nd Main Extension

To Cincinnati To Chattanooga

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Grove, KY – Rock Cut

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Grove, KY

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Grove, KY – Rock Cut

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Grove, KY – Pitman Creek Bridge

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Grove, KY – Pitman Creek Bridge

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Grove, KY

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Grove, KY

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Chicago Gateway

Chicago Cleveland Toledo

The Chicago Line

  • High speed, double track+ route
  • Norfolk Southern’s busiest line
  • All traffic types
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Chicago Gateway

Chicago Cleveland Bellevue Toledo

  • Ft. Wayne

The B-Line

  • Single track with sidings
  • Traffic Control
  • Less traffic than the Chicago Line
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Chicago Gateway

Chicago Elkhart Butler Cleveland Bellevue Toledo

  • Ft. Wayne

An Integrated Network

  • Multiple combinations of primary routes
  • Connectors give redundancy and flexibility
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Supporting Chicago

Chicago Elkhart Butler Cleveland Bellevue Toledo

  • Ft. Wayne

Chicago capacity expansion

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Supporting Merchandise Volumes

Chicago Elkhart Butler Cleveland Bellevue Toledo

  • Ft. Wayne

Bellevue hump yard expansion

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Overall: $500+ million investment

Chicago Elkhart Butler Cleveland Bellevue

18 projects between Chicago and Cleveland

Toledo

  • Ft. Wayne
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Goshen, IN – Extend Siding

Goshen

CSX CF&E

Elkhart Yard

To Toledo

To Cincinnati Chicago Main Lines

Dunlap N

87+/- Miles To Chicago

3.2 Miles

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Goshen, IN – Extend Siding

Goshen

CSX CF&E

Elkhart Yard

To Toledo

To Cincinnati Chicago Main Lines

Dunlap N

87+/- Miles To Chicago

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CP 503 (Hick) CP 502 CP 501 CP 485 CP 483 CP 482 (Porter) CP 487 CP 497 CP 507 CP 506 CP 491

509 505 500 495 490 485 480

INDIANA ILLINOIS

AMTRAK IHB IHB Colehour Yard CSX

Indiana Harbor Canal Bascule Drawspan

Millers

CP 505

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Indiana Gateway Project – Existing

W N E S

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Indiana Gateway Project - Planned

CP 503 (Hick) CP 502 CP 501 CP 485 CP 483 CP 500 CP 482 CP 487 CP 498 CP 497 CP 494 CP 507 CP 506 CP 492 CP 490

509 505 500 495 490 485 480

CP 479

INDIANA ILLINOIS

AMTRAK IHB IHB Colehour Yard CSX

Indiana Harbor Canal Bascule Drawspan

Millers

IGP#2 (AMTRAK) Porter IGP#1 Burdick Roll & Hold

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Indiana Gateway Project – Planned

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NS Calumet Gary /Chicago International Airport NS 63rd ST NS Colehour

LAKE MICHIGAN

NS Main Metra Lines

NS 47th ST NS Hegewisch Englewood Flyover Ashland Avenue Yard Brighton Park Torrence Ave

Chicago IMF and Englewood Flyover

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Chicago – 63rd Street Intermodal Facility

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Support Yard Extension Echo Connection 51st Street Bridge Replacement Garfield Lot Parking (Complete) Englewood Flyover 47th ST IMF

Chicago – 47th St Expansion & Echo Connection

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Chicago – 47th Street Intermodal Facility

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NS 63rd ST NS 47th ST Englewood Flyover Metra Line

NS Main Metra Lines

47th and 63rd St Intermodal Facilities

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Englewood

Metra Tracks To Be Removed NS Metra Flyover

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