Norfolk Southern Announces $11 Million Investment in Philadelphia Navy Yard Intermodal Facility

Norfolk Southern Announces $11 Million Investment in Philadelphia Navy Yard
Intermodal Facility

PHILADELPHIA, Nov. 2 /PRNewswire-FirstCall/ -- Norfolk Southern (NYSE: NSC)
and the Commonwealth of Pennsylvania are investing $11 million in the
railroad's Philadelphia Navy Yard intermodal facility to expand track and
parking capacity. The expansion is part of Norfolk Southern's multi-state
Crescent Corridor initiative to establish a high-speed intermodal freight rail
route between the Gulf Coast and the Northeast. The proposed investment -- $6
million from Norfolk Southern and $5 million from Pennsylvania -- will create
the capacity to handle more than 72,000 containers and trailers annually.
Construction is scheduled to begin in mid-2010.

"Because of its strategic location to Southeastern Pennsylvania, South Jersey,
and Delaware, expansion of the Philadelphia Navy Yard intermodal facility is
critical to the success of our Crescent Corridor," said Wick Moorman, Norfolk
Southern's chief executive officer. "We commend Gov. Ed Rendell for his
efforts to provide state funding for our intermodal terminal initiatives in
the commonwealth. We want to thank Sens. Robert Casey and Arlen Specter for
their support of a public-private partnership with the U.S. Dept. of
Transportation so that Pennsylvania will benefit from the economic development
opportunities and job growth potential of integrated logistics hubs. We also
want to express our gratitude to the members of the Pennsylvania congressional
delegation who support the Crescent Corridor, including Reps. Bob Brady,
Charlie Dent, Chakah Fattah, Jim Gerlach, Tim Holden, Patrick Murphy, Todd
Platts, Allyson Schwartz, and Bill Shuster. Finally, we express our
appreciation to Mayor Michael Nutter and the region's economic development
agencies and authorities for their efforts to improve freight transportation
infrastructure in Philadelphia and the Delaware Valley."

"Rail freight is an important component of any transportation infrastructure
discussion," Governor Edward G. Rendell said. "The Philadelphia Navy Yard
intermodal facility will serve Pennsylvania, New Jersey, and Delaware,
creating good jobs, generating revenue locally, and helping reduce highway
congestion. Pennsylvania has invested heavily in rail freight because it is a
smart, environmentally friendly, cost-effective infrastructure investment. I
will continue to advocate for rail freight investments at the state and
national level."

"Philadelphia has been a rail transportation hub for the Mid-Atlantic region
for more than 100 years," said Mayor Michael Nutter. "With this $11 million
investment, Norfolk Southern's intermodal terminal at the Navy Yard will
benefit shippers and consumers in the city and lead to further economic
development opportunities in the Philadelphia area."

Norfolk Southern's Crescent Corridor initiative is a multistate network of
infrastructure improvements and facilities intended to enhance Norfolk
Southern's 2,500-mile rail network that supports the supply chain from the
Gulf Coast and Memphis to Harrisburg, Philadelphia, and the New York
metropolitan area and enable it to handle more freight traffic faster and more
reliably. The railroad is in the process of implementing corridor projects,
including straightening curves, adding passing tracks, improving signal
systems, and building new terminals.

Altogether, nearly $2.5 billion in Crescent Corridor projects have been
identified, and based on the public benefits of relief from highway
congestion, NS plans to implement the Crescent Corridor initiative through a
series of public-private partnerships. At completion, the Crescent Corridor
is projected to divert more than 1 million truckloads of freight from the
highways to the rails annually, saving the U.S. more than 170 million gallons
of fuel per year.

When the Crescent Corridor is fully operational, annual benefits to
Pennsylvania are expected to include nearly 700,000 long-haul trucks diverted
to rail, almost 10 million gallons of fuel saved, carbon dioxide reduction of
110,000 tons, more than $44 million in traffic congestion savings, and
avoidance of an estimated $8.5 million in accident costs. Over the next 10
years 26,000 jobs in Pennsylvania are expected to be created or enhanced by
the Crescent Corridor. Norfolk Southern is constructing a new $95 million
intermodal facility in Franklin County, Pa., and has $52 million in
improvements planned for its existing Harrisburg intermodal terminal, along
with $27 million in track and signal upgrades in Berks, Chester, Cumberland,
Dauphin, Franklin, Lebanon, Lehigh, Montgomery, and Northampton counties.

Rail intermodal traffic uses one-third of the fuel required by long-haul
trucks and greatly reduces highway congestion, greenhouse gas emissions, and
highway maintenance costs. The Crescent Corridor will help the environment
and reduce a large burden on state budgets.

Norfolk Southern Corporation (NYSE: NSC) is one of the nation's premier
transportation companies. Its Norfolk Southern Railway subsidiary operates
approximately 21,000 route miles in 22 states and the District of Columbia,
serves every major container port in the eastern United States, and provides
efficient connections to other rail carriers. Norfolk Southern operates the
most extensive intermodal network in the East and is a major transporter of
coal and industrial products.

Any statements contained in this news release which are not related to
historical facts are forward-looking statements as that term is defined in the
Private Securities Reform Act of 1995. Such forward-looking statements are
subject to risks and uncertainties (noted in the corporation's filings with
the SEC) which could cause actual results to differ materially.

SOURCE Norfolk Southern Corporation

Media, Rudy Husband, +1-610-567-3377, rudy.husband@nscorp.com, or Investors,
Leanne Marilley, +1-757-629-2861, leanne.marilley@nscorp.com, both of Norfolk
Southern Corporation