Operating Capacity

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                                    Operating             Builds

                                Building on its heritage
                                of innovation, Norfolk
                                Southern focused on
                                customer satisfaction in
                                2005 by integrating new
Annual Report 2005

                                systems that helped                            Norfolk Southern has prepared itself             capacity and improve service on

                                operations remain                           to take on additional business and to               the Meridian Speedway between
                                                                            handle it effectively:                              Meridian, Miss., and Shreveport, La.,
                              consistent even with                        • A joint venture with Kansas City                  a critical connection between the

                                record volumes and                          Southern pending before the Surface                 Southeast and Southwest.
Norfolk Southern Corporation

                                                                            Transportation Board will increase                  • Routing agreements with several
                                major weather-related

                               b                   y developing
                               inventive business solutions benefiting
                               the company as well as customers and
                               communities, and using performance-
                               enhancing technology, NS looks to the
                               future even as it hails its success as a
                               175-year company.
                                  The continued efficiency of rail in the
                               multimodal global marketplace depends
                               on alliances and other cooperative
                               efforts to increase profitability and
                               improve service on the transportation
                                                                              Superintendents of transportation Howard Gillespie, standing, Phil Turner, far left, and Wayne
                                                                              Baker keep their eyes on train movements and horsepower utilization at the operations control
                                                                              center in Atlanta.
                                                                                                                                                      Annual Report 2005

                                                                                                                                                      Norfolk Southern Corporation
  The Optimized Train Control system enhances train and operating efficiency by linking together a variety of data points with the Norfolk Southern
  communications network.

major carriers streamline the exchange              Expected to be operational in 2007, it will          system combines data communications,
of traffic at major gateways.                       be one of the largest intermodal facilities          positioning systems and onboard
                                                    on the NS network, with capacity to                  computers tied to a train’s control
   Norfolk Southern focused on public-
                                                    support a full-scale logistics park.                 systems. It automatically verifies
private partnerships to serve the public’s
interests and improve service and
                                                    • Proposed work on corridor                          operating limits to help prevent
                                                    improvements such as CREATE                          collisions and other train accidents. OTC
capacity on the network:
                                                    (Chicago Regional Environmental                      provides improved visibility of network
• Proposed clearance improvements                   and Transportation Efficiency) will                  conditions and promotes more efficient
along the Heartland Corridor from
                                                    unscramble rail lines in Chicago, leading            operations.
Norfolk to Ohio will create a seamless,
                                                    to increased efficiency for shippers and             • NS is implementing its Unified
high-capacity and higher-speed double-
                                                    better traffic flow for motorists.                   Train Control System. Jointly
stack intermodal route across Virginia
                                                                                                         developed by NS and General Electric,
and West Virginia to Midwest markets.                   Developments in technology
                                                                                                         UTCS provides a seamless and disaster-
The western anchor of the project,                  continue to enhance NS’ rail operations:
                                                                                                         hardened transportation management
the Rickenbacker Intermodal Facility                • The company is preparing to test                   system. It replaces existing equipment
at Columbus, Ohio, is the result of an              a system called Optimized Train
                                                                                                         with networked, computer-aided
agreement between the Columbus                      Control between Charleston and
                                                                                                         dispatching work stations that function
Rickenbacker Airport Authority and NS.              Columbia, S.C., to enhance safety. The
                                                                                                         with tactical NS information systems.
                                                                                                                                    • Responding to increased demand
                                                                                                                                   for rail freight transportation, NS hired
                                                                                                                                   more than 2,400 train and engine service
                                                                                                                                   and mechanical employees in 2005.
                                                                                                                                    • The company enhanced training
                                                                                                                                   for train and engine service employees
                                                                                                                                   and reached more field employees
                                                                                                                                   through coaching and mentoring. All
                                                                                                                                   operations supervisors completed
                                                                                                                                   training on leadership skills, including
                                                                                                                                   communications and coaching.
                                                                                                                                    • Planning for future work-force
                                 Brig Burgess, Norfolk Southern Dearborn Division superintendent, addresses NS employees in
                                 Atlanta about management career opportunities available within the company.                       changes, NS conducted career fairs to
                                                                                                                                   inform agreement employees about the
Annual Report 2005

                               UTCS includes a promising new feature                 Norfolk Southern is working in
                                                                                                                                   benefits of joining management ranks.
                               called the movement planner. Using a              additional ways to improve safety and
                               virtual model of the NS rail network,             customer service:
                                                                                                                                    • The company developed operations
                                                                                                                                   supervisor training for agreement
                               the movement planner formulates                     • The purchase of 222 new high-
                                                                                                                                   employees who may choose to move
                               an optimal, system-focused train                  efficiency locomotives from late
                                                                                                                                   into nonagreement supervisory
                               management plan with the objective of             2005 through the first half of 2006 will
Norfolk Southern Corporation

                                                                                                                                   positions. Similar to NS’ management
                               maximizing on-time performance.                   increase productivity and help handle
                               • The company has refined its                     growth in traffic volumes. Also, in the
                                                                                                                                   trainee program, it teaches leadership
                                                                                                                                   skills, builds confidence and teamwork,
                               Thoroughbred Operating Plan,                      company’s largest-ever locomotive
                                                                                                                                   increases knowledge of company
                               increasing capacity for freight and               rehabilitation program, NS overhauled
                                                                                                                                   operations, and makes management
                               making railroad operations more                   491 locomotives and rebuilt 29 in 2005.
                                                                                                                                   processes more consistent. The first
                               flexible. For the first time, the plan            In 2006, NS expects to overhaul 420
                                                                                                                                   group of employees began training in
                               incorporates intermodal and unit trains           locomotives and rebuild 52.
                               dedicated to single commodities.
                                                                                                                                   early 2006.   t
                                • NS evaluates the benefits of
                               infrastructure investment
                               alternatives through a refined capacity
                               planning process using industry-
                               standard simulation software. The
                               process has led to capacity projects
                               on rail corridors between Memphis
                               and Chattanooga, Tenn.; between
                               Chattanooga, Atlanta and Jacksonville,
                               Fla.; and between Charleston and
                               Columbia, S.C.

                                                                                   Transportation management trainee Sarah Ponder operates a locomotive simulator at Norfolk
                                                                                   Southern’s Training Center at McDonough, Ga., near Atlanta.