Stifel Nicolaus Transportation Conference February 15, 2011 Wick - - PowerPoint PPT Presentation

Stifel Nicolaus Transportation Conference

February 15, 2011

Wick Moorman Chairman, President & CEO Norfolk Southern Corporation

“Everybody talks about the weather, but nobody does anything about it.”

• - Charles Dudley Warner

Editorial, Hartford Courant [Aug. 24, 1897]

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Railway Volume

First Quarter through Week 6 2011 vs. 2010

1QTD 2011 vs. 2010 Units Abs. % Chg.

Agriculture 72,187 (1,571) (2%) Chemicals 44,029 (997) (2%) MetCon 62,598 4,109 7% Paper 37,504 1,122 3% Automotive 32,464 2,650 9% Merchandise 248,782 5,223 2% Intermodal 338,427 29,228 9% Coal 187,622 26,531 16% Total 774,831 60,982 9% Source: AAR carloadings, which are reported weekly and may not equal NS' reported volumes.

Outlook – Business Portfolio

General Merchandise

• Manufacturing recovery

Chemicals

• Build out of ethanol network and export grain

growth Agriculture

• New business, improved auto production and

sales Automotive

• Recovery in global steel production

Steel

• Uncertainty in housing, but improving paper

markets Forest Products

NS Manufacturing Network Flows

Volumes 2010 vs. 2009 Metals/Construction

25%

Chemicals

18%

Agriculture

11%

Paper

7%

Automotive

0%

Maps use variable scales

Outlook – Business Portfolio

Intermodal

• Truckload conversions

Domestic Intermodal

• Improving imports/exports

International Intermodal

• New business opportunity

Premium

Within our service territory:  74% of the 2009 US population  58% of total energy consumption in U.S.  63% of U.S. manufacturing  One study suggests that at least 30 million truck shipments over 550 miles touch our service territory

U.S. Demographics

Truck Volume in 2007

Projected Truck Volume in 2040

Chicago Cincinnati Columbus Pritchard Roanoke Norfolk Detroit Philadelphia Ayer Atlanta

Charlotte

Lynchburg Corinth Shreveport Meridian New Orleans

Memphis

NY/NJ Bethlehem Titusville Jacksonville

Corridor Volume Increases 2010 vs. 2009 Premier Route 18% PanAm Southern 32% Crescent Corridor 31% Meridian Speedway 36% Titusville 146%

NS Corridor Strategy

Greencastle Mechanicville Birmingham

Outlook – Business Portfolio

Coal

• Falling stockpiles and increased electricity

generation Utility Coal

• Improving exports

Export Coal

• Recovery in global steel production

Domestic Met Coal

Northern Appalachia 2009-41.3 M 2010-45.3 M Central Appalachia 2009-62.3 M 2010-64.8 M Illinois 2009-10.8 M 2010-11.1 M Powder River Basin 2009-30.1 M 2010-32.8 M

2009-2010 NS Origin Coal Volume (Tons)

Notes: Excludes coke and iron ore volume.

Lamberts Point Coal Docks

Meeting The Challenge

• Employees
• Equipment:

– Locomotives and Freight Cars

• Locomotive and Freight Car Maintenance

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Outlook – Business Portfolio

• Manufacturing recovery

Chemicals

• Build out of ethanol network and export grain

growth Agriculture

• Truckload conversions

Domestic Intermodal

• Improving imports/exports

International Intermodal & Export Coal

• Recovery in global steel production

Domestic Met Coal & Steel

• Falling stockpiles and increased electricity

generation Utility Coal

• New business, improved auto production and

sales Automotive

• Uncertainty in housing, but improving paper

markets Forest Products

One line, infinite possibilities

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