Profile: Norfolk Southern Corp (NSC)
19 Dec 2014
Norfolk Southern Corporation (Norfolk Southern), incorporated on July 23, 1980, is a Virginia based company that controls a railroad, Norfolk Southern Railway Company. Norfolk Southern Railway Company is primarily engaged in the rail transportation of raw materials, intermediate products, and finished goods primarily in the Southeast, East, and Midwest and, via interchange with rail carriers, to and from the rest of the United States. Norfolk Southern also transports overseas freight through several Atlantic and Gulf Coast ports. It provides logistics services and offers intermodal network in the eastern half of the United States.
As of December 31, 2011, Norfolk Southern’s railroads operated approximately 20,000 route miles in 22 states and the District of Columbia. The system’s line reach many individual industries, electric generating facilities, mines (in western Virginia, eastern Kentucky, southern and northern West Virginia, and western Pennsylvania), distribution centers, transload facilities, and other businesses located in smaller communities in its service area.
Triple Crown Operations
Triple Crown Services Company (Triple Crown) provides bimodal, truckload transportation service utilizing RoadRailer trailers, a hybrid technology that facilitates both over-the-road and on-the-rail transportation utilizing enclosed trailers that are pulled over the highways in tractor-trailer configuration and over the rails by locomotives. Triple Crown provides service in the eastern two-thirds of the United States, as well as Ontario and Quebec through a network of terminals strategically located in 13 cities.
Coal, coke, and iron ore, most of which is bituminous coal is the Company’s commodity group. The railroads handled a total of 177.9 million tons in 2011, most of which originated on the Company’s lines in West Virginia, Virginia, Pennsylvania, and Kentucky. Revenues from coal, coke, and iron ore accounted for about 31% of the Company’s revenues during 2011. Norfolk Southern coal franchise serves the electric generation market, serving over 100 coal generation plants, as well as the export, metallurgical and industrial markets primarily through direct rail and river, lake, and coastal facilities, including Lambert’s Point and various terminals on the Ohio River, the Port of Baltimore, and Lake Erie.
GENERAL MERCHANDISE TRAFFIC
General merchandise traffic consists of five commodity groupings: automotive; chemicals; metals and construction; agriculture; consumer products and government; and paper, clay and forest products. The automotive group includes finished vehicles for BMW, Chrysler, Ford Motor Company, General Motors, Honda, Hyundai, Mazda, Mercedes-Benz, Mitsubishi, Subaru, Suzuki, Toyota and Volkswagen, and auto parts for Ford Motor Company, General Motors, Honda, Mazda, Mitsubishi, Nissan, Subaru, and Toyota. The chemicals group includes sulfur and related chemicals, petroleum products, chlorine and bleaching compounds, plastics, rubber, industrial chemicals, chemical wastes, and municipal wastes. The metals and construction group includes steel, aluminum products, machinery, scrap metals, cement, aggregates, bricks, and minerals. The agriculture, consumer products, and government group includes soybeans, wheat, corn, fertilizer, animal and poultry feed, food oils, flour, beverages, canned goods, sweeteners, consumer products, ethanol, and items for the military. The paper, clay and forest products group includes lumber and wood products, pulp board and paper products, wood fibers, wood pulp, scrap paper, and clay. In 2011, 120million tons of general merchandise freight, or approximately 66% of total general merchandise tonnage handled by the Company, originated online.
The intermodal market consists of shipments moving in trailers, domestic and international containers, and RoadRailer equipment. These shipments are handled on behalf of intermodal marketing companies, international steamship lines, truckers, and other shippers. Intermodal units handled in 2011 were 3.2 million, the revenues from which accounted for 19% of the Company’s total railway operating revenues for the year.
Regularly scheduled passenger trains are operated by Amtrak on the Company’s lines between Alexandria, Virginia, and New Orleans, Louisiana; Raleigh and Charlotte, North Carolina; Selma and Charlotte, North Carolina; Chicago, Illinois, and Porter, Indiana; Chicago, Illinois, and Battle Creek, Michigan; Chicago, Illinois, and Pittsburgh, Pennsylvania; Chicago, Illinois, and Detroit, Michigan, and Pittsburgh and Harrisburg, Pennsylvania. Commuter trains operated on the Company’s line between Manassas and Alexandria in accordance with a contract with two transportation commissions of the Commonwealth of Virginia. The Company leases the Chicago to Manhattan, Illinois, line to the Commuter Rail Division of the Regional Transportation Authority of Northeast Illinois (METRA). The Company operates freight service over lines with significant ongoing Amtrak and commuter passenger operations, and is conducting freight operations over trackage owned or leased by Amtrak, New Jersey Transit, Southeastern Pennsylvania Transportation Authority, Metro-North Commuter Railroad Company and Maryland Department of Transportation. Passenger operations are conducted either by Amtrak or by the commuter agencies over trackage owned by Conrail in the Shared Assets Areas.
The Company’s noncarrier subsidiaries engage principally in the acquisition, leasing, and management of coal, oil, gas and minerals; the development of commercial real estate; telecommunications; and the leasing or sale of rail property and equipment. During 2011, no such noncarrier subsidiary or industry segment grouping of noncarrier subsidiaries met the requirements for a reportable business segment.
The Company competes with CSX system.
Norfolk Southern Corp
Three Commercial Place
NORFOLK VA 23510-2191