Norfolk Southern combines divisions to streamline operations and support growth

Received Via e-mail from Norfolk Southern

NORFOLK, Va., Jan. 12, 2016 – Norfolk Southern Corporation (NYSE: NSC) is consolidating its Virginia and Pocahontas divisions to form the new Pocahontas Division, with headquarters in Roanoke, Va., effective Feb. 1.

The consolidation is part of the company’s ongoing drive to enhance operating efficiencies and support long-term growth. This announcement follows other recent strategic initiatives, including the reduction from three corporate office locations to two, restructuring of the Triple Crown Services subsidiary, and integration of the D&H South Line to increase options for shippers.

In a related move, Norfolk Southern is changing traffic patterns and idling parts of its “West Virginia Secondary,” a 253-mile line between Columbus, Ohio, and central West Virginia that has experienced steady declines in business in recent years. This follows the idling of a 33-mile mainline between Elmore and Princeton, W.Va., in September 2015.

The new Pocahontas Division will comprise 2,581 route miles, mainly in Virginia and West Virginia, extending from the Port of Virginia to Portsmouth, Ohio, and from Bristol, Va., to Hagerstown, Md. “Creation of the new Pocahontas Division supports the railroad’s strategic plan to deliver cost-efficient and superior service while building a stronger enterprise,” said Mike Wheeler, senior vice president operations. “Consolidating the two divisions enables us to streamline operations and focus resources on high-return growth opportunities.”

Combining the divisions will improve service by placing most of the company’s coal routes under the operating authority of a single division. Additionally, the move further consolidates operational control over the company’s Heartland Corridor, a double-stack intermodal route through Virginia, West Virginia, and Ohio.

Roanoke, which will serve as headquarters of the new Pocahontas Division, currently is headquarters of the Virginia Division. The new division will be led by Superintendent Charles M. “Mike” Irvin, a 33-year employee with wide experience managing several different divisions for the railroad. In Roanoke, Norfolk Southern currently operates a local switching yard, locomotive and rail car maintenance and overhaul facilities, and a material yard that supports track maintenance gangs systemwide.

The consolidation will affect management and office staff positions now based in Bluefield, W.Va., currently the Pocahontas Division headquarters. Those employees will have an opportunity to relocate to Roanoke or apply for other positions at the company. With the consolidation, Norfolk Southern will operate 10 divisions across its network.

The company will continue to operate its rail yard in Bluefield. Trains moving Appalachian coal comprise most of the business handled there, and yard traffic has declined as coal volumes moved by the railroad have dropped over the past five years. Currently, about 130 people work in operations departments at the yard, including in transportation, engineering, and mechanical.

“Coal mined from the Appalachian Basin has long served as a vital, low-cost source of energy to power America, and Norfolk Southern remains committed to providing top-notch service to our valuable coal customers,” Wheeler said. “At the same time, the railroad is nimble and adapts to changing market conditions. Our strategic plan positions us to meet the needs of current customers while creating efficiencies and focusing resources on infrastructure and markets that support continued growth.”

For example, Wheeler noted that the Heartland Corridor, opened in 2010 as part of a public-private partnership among Norfolk Southern, Virginia, West Virginia, Ohio, and the federal government, created the shortest, most efficient, and environmentally friendly route to transport intermodal freight between the Port of Virginia and Midwest consumer markets. This year, Norfolk Southern trains will begin serving the new Heartland Intermodal Gateway in Prichard, W.Va., the state’s first intermodal facility, which was developed through the corridor partnership.

“The Heartland Corridor opens global trade markets for West Virginia, Kentucky, and Ohio businesses, creates opportunities for jobs and economic expansion, and supports the railroad’s efforts to shift freight from highway to rail,” Wheeler said. “The Heartland Corridor is a vital part of the U.S. transportation network. As we help communities and businesses compete in the global marketplace, we are building a stronger future for Norfolk Southern and our shareholders.”

In Virginia and West Virginia, Norfolk Southern in 2014 employed 5,690 people and funded a payroll of $450 million, invested $235 million in track and facilities, and spent $278 million in purchases and payments with suppliers and local businesses.

About Norfolk Southern

Norfolk Southern Corporation (NYSE: NSC) is one of the nation’s premier transportation companies. Its Norfolk Southern Railway Company subsidiary operates approximately 20,000 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, automotive, and industrial products.

CSX Names New Sales & Marketing Leaders

Recieved Via e-mail from CSX

January 11, 2016

CSX Names New Sales & Marketing Leaders JACKSONVILLE, Fla. – January 11, 2016 – CSX today appointed key leaders in the Sales and Marketing organization as the company continues to focus on enhancing customer relationships and encouraging profitable growth. Dean M. Piacente has been named vice president-intermodal; Clark Robertson, vice president-chemicals; and Tim McNulty, vice president-agriculture; all reporting to Fredrik J. Eliasson, executive vice president and chief sales and marketing officer. Bill Clement, who previously headed intermodal, has left the company and is pursuing other interests. “We thank Bill Clement for his tremendous service that included helping the company build the premier intermodal network in the East,” Eliasson said. “Dean Piacente, Clark Robertson, and Tim McNulty are proven sales and marketing leaders who will continue to work effectively across our company and with customers to develop new relationships, expand our service offerings, and maximize growth opportunities.” Piacente, who joined CSX in 1987, assumes the intermodal leadership role from his position as vice president-chemicals. In that role, he led significant revenue and new customer growth in the chemicals market and leveraged opportunities in the transition of the global energy markets. In addition, he has served in other senior sales and marketing capacities and as vice president-finance. “Dean’s record of growth, revenue generation, and customer relationships makes him the ideal choice to lead intermodal, which is a significant growth driver for CSX as we work with our trucking partners to convert to rail-based solutions more of the approximately 9 million highway loads in the East that travel 550 miles or more,” Eliasson said. Robertson, who joined CSX in 2010, moves to vice president-chemicals from his prior role as assistant vice president-regional development. Robertson oversaw significant business growth from new customers locating on CSX’s network and existing customers expanding their operations. He also led development and implementation of the Select Site certification program, which provides prospective customers with online listings of certified development-ready properties on or near CSX’s rail network. McNulty, who joined CSX in 1985, is promoted to vice president-agriculture, which will now include the company’s phosphate and fertilizer market, in addition to shipments of grain and ethanol. McNulty has been instrumental in the development of CSX’s ethanol unit train network and has an established record of building strong teams, supporting customer needs and enhancing growth and efficiency. CSX, based in Jacksonville, Fla., is a premier transportation company. It provides rail, intermodal and rail-to-truck transload services and solutions to customers across a broad array of markets, including energy, industrial, construction, agricultural, and consumer products. For nearly 190 years, CSX has played a critical role in the nation’s economic expansion and industrial development. Its network connects every major metropolitan area in the eastern United States, where nearly two thirds of the nation’s population resides. It also links more than 240 short-line railroads and more than 70 ocean, river and lake ports with major population centers and farming towns alike. More information about CSX Corporation and its subsidiaries is available at www.csx.com. Like us on Facebook (http://www.facebook.com/OfficialCSX) and follow us on Twitter (http://twitter.com/CSX).

From my railroad archives!

Received via e-mail 

Came across this old photo taken in NJT's Raritan yard, date unknown, on a snowy day. On the left is NJT 5910 (ex-CNJ 1530; GP7) It was retired in October, 1984 and would be scrapped in January, 1985. The middle diesel is CR 5428 (ex-PRR 8574; GP7, ex-PC 5874) which would eventually be rebuilt as a GP8. On the right is NJT 5906 (ex-CNJ 1527; GP7). After searching the Internet whatever became of CR 5428 and NJT 5906 is unknown.

Somerset County 4-H Trainmasters Annual Winter Train Meet

For More Show Information Visit the club website Here

2015 U.S. Rail Freight DOWN vs. 2014; Trucking Negative, too

Recieved via e-mail...

"Total rail traffic moved in the U.S. in 2015 was about 28 million carloads and intermodal units, down 2.5% compared to 2014; total U.S. carload traffic for 2015 dropped 6.1%, AAR reported on Jan. 6, 2016. Additionally, carload traffic in the month of December 2015 dropped 15.6% from December 2014."   "...for the week ending Jan. 2, 2016, on 13 reporting U.S., Canadian and Mexican railroads...total combined weekly rail traffic in North America was 516,946 carloads and intermodal units, down 11.8%."    http://www.railwayage.com/index.php/freight/class-i/aar-energy-manufacturing-weakness-negatively-impacted-rail-traffic-in-2015.html

Yet again, as I have long said about railroads and trucking as barometers of the true health of the economy: "You can't fake freight." (Or, Cargo is not 'an opinion'.)
While longer term, freight volumes are responsive to political policies, tonnage figures for weekly and monthly intervals cannot be easily manipulated: something was either shipped, moved and received...or it was not. Someone in Purchasing ordered something that they felt they could sell. (Nobody is inclined, in today's J-I-T environment that recognizes the time value of money, to load up on uncommitted inventory.) 

Rail freight carriers are not alone; the truckers are feeling the squeeze, too.

From yesterday's Wall Street Journal:

Sales Downshift at Heavy Truck Makers 
Lackluster demand for hauling freight curbs big-rig purchases; dealer inventories are bulging
    "Trucking companies are buying fewer vehicles amid lackluster demand for hauling freight, triggering job cuts among equipment manufacturers and leaving a near-record number of big rigs gathering dust on dealers’ lots."
    http://www.wsj.com/articles/sales-downshift-at-heavy-truck-makers-1452110429

Also from just yesterday:

Avondale Partners Senior Analyst Donald Broughton Talks Transports on CNBC Squawkbox
 "...that industrial recession is getting worse, not better". "...we've seen truck tonnage negative three out of the last four months...it's been negative six out of the last eleven months"
     http://www.avondalepartnersllc.com/news/senior-analyst-donald-broughton-talks-transports-on-cnbc-squawkbox/
And yet, we're told that the Economy is 'Just Fine'...     But, "You can't fake freight."

---NSC

CSX and the Conservation Fund Announce 2015 Grant Recipients

Received Via e-mail

January 7, 2016

CSX and the Conservation Fund Announce 2015 Grant Recipients Supporting Food Transportation and Distribution Capacity of Local Organizations  ARLINGTON, Va. (January 7, 2016) – CSX and The Conservation Fund today announced the grant recipients for the 2015 Grant Program for Transporting Healthy Food. Twelve charitable organizations in Alabama, Georgia, Kentucky, North Carolina, New York, Pennsylvania, Tennessee, Virginia and West Virginia will receive grants ranging from $4,000 to $10,000 to support and strengthen local transportation and distribution of fresh produce and healthy food to communities in need. The grant program, now in its second year, enhances the delivery capabilities of food producers and distributors, and thereby improves the availability of healthy food. The grants will help provide the resources and infrastructure that these organizations need to store, package and distribute fresh food and produce. Combined, the 12 recipient organizations provide over 82 million pounds of food or 69 million meals to approximately 2.5 million people each year. As one of the nation’s premier transportation companies, CSX recognizes the important role that transportation serves in bringing goods like food and agricultural products to communities. “At CSX, it’s our job to move essential products safely and efficiently,” said Tori Kaplan, Assistant Vice President, Corporate Social Responsibility, CSX. “We’re proud to continue our focus on transportation by working with The Conservation Fund to support local organizations that connect residents with healthy, affordable food.” The Conservation Fund, a national nonprofit dedicated to finding conservation solutions that balance environmental and economic needs, has partnered with CSX to address gaps in local food distribution and find local partners who can help enhance delivery capabilities. Since the program’s establishment in 2014, the grant funding is projected to enable recipient organizations collectively serve an additional 150,000 families with more than nine million pounds of food and increase the number of meals provided by 4.5 million. “These grants are helping improve our entire food chain from the field to the fork,” said Kris Hoellen, Senior Vice President of Sustainable Programs at The Conservation Fund. “Local food organizations are unsung heroes working tirelessly to make healthy, fresh food a convenient, practical and affordable option for consumers as well as a viable career option for our working farmers. We are thrilled to partner with CSX to help these groups expand their food network, while supporting local farms.” Grant Recipients  Alderson Community Food Hub, Alderson, W.V.  The Alderson Community Food Hub connects everyone from producers to consumers. It strives to provide access to nutritious food, foster community participation and cultivate an awareness of sustainable food systems in the Greenbrier Valley. The organization will use the grant funds to purchase and install a walk-in refrigerated container for aggregation and storage of fresh produce, for delivery to local schools and to serve its growing mobile market program. Berea Neighborhood Food Project, Berea, Ky. Berea Neighborhood Food Project is a non-profit working with neighborhoods to help people grow food from their yards, with their neighbors. It will use the grant to build a mobile produce cart that will serve low income and high risk communities by distributing free produce and staple foods, as well as provide educational, nutrition based workshops and connect communities with SNAP Double Dollars and Farmers Market WIC vouchers. City Harvest, New York, N.Y. Founded in 1982 as the world’s first food rescue organization, City Harvest is dedicated to helping feed the nearly 1.4 million New Yorkers facing hunger. City Harvest will collect 55 million pounds of excess food from restaurants, grocers, bakeries, manufacturers, and farms, and deliver it free of charge to 500 community food programs across the city this year. The organization will use the grant to purchase over 31,800 heavy-duty produce bags (enough to hold 950,000 pounds of food) and to offset the cost of leasing six of their 21 refrigerated distribution trucks. FACES Food Pantry, Inc., Farmville, Va.  Farmville Area Community Emergency Services (FACES) Food Pantry, Inc. is one of the largest and most efficient food agencies in Virginia providing emergency and supplementary food of high nutritional quality to qualified residents of Prince Edward County and portions of Charlotte and Cumberland Counties. FACES distributes food weekly to an average of 960 households representing 1,358 individuals carefully screened to document need. It will use the grant to support the purchase of a used refrigerated truck to allow FACES to significantly increase produce distribution through 15 food pantries in eight rural Virginia counties. Global Growers Network, Stone Mountain, Ga.  Global Growers Network grew out of the tremendous demand among international farmers, many who came to Atlanta as refugees of war, to reconnect to their agricultural heritage in their new home. Recognizing this exceptional talent, Global Growers connects local families to land, education, and markets in order to build healthier communities and strengthen the local economy. With this grant, Global Growers will establish two mini-aggregation hubs in Georgia to supply The Common Market Georgia – its local food hub – with a greater volume of high quality local produce for the wholesale markets that reach vulnerable populations. Local Environmental Agriculture Project, Inc., Roanoke, Va. Local Environmental Agriculture Project Inc. (LEAP) is a Roanoke-based non-profit organization that nurtures healthy communities and resilient local food systems. LEAP does this by connecting the dots between local farmers, food producers, and community members. The organization will use the grant to purchase an outdoor walk-in to provide additional cold storage for LEAP Food Hub and LEAP Mobile Market. Lynchburg Grows, Lynchburg, Va. Lynchburg Grows is an urban farm that takes a hands-in-the-dirt approach to teaching others how sustainable food production promotes a healthy planet. The organization will use the grant to replace an existing 50-year-old cold storage box in order to allow expansion of current operations, including improving access to fresh produce in Lynchburg’s food deserts. Mt. Vernon Community Garden, Cleveland, N.C. Mt. Vernon Community Garden is a 25-acre area that serves as a free market for health and wellness. The group encourages 4-H participation for the youth, intergenerational mentoring, and self reliance by growing fresh fruit and vegetables; provides food for the food bank; and promotes exercise, health and wellness in the community. Mt. Vernon Community Garden will use the grant toward the purchase of a "Veggie Van" to deliver fresh vegetable to food insecure families in Rowan County, N.C. My Mobile Market, Williamson, W.V. The Williamson Farmers' Market’s My Mobile Market brings fresh, local produce to community members, encourages healthy eating habits and provides an outlet for local farmers and gardeners to sell home grown foods and veggies. The organization will use the grant to expand and develop its community supported agriculture (CSA) project with purchase of a delivery vehicle. Second Harvest Food Bank of Middle Tennessee, Nashville, Tenn.  Since 1978, Second Harvest Food Bank of Middle Tennessee has provided a central distribution center for companies, groups and individuals who wished to help provide food for hungry people in Middle Tennessee. Second Harvest’s mission is to feed hungry people and work to solve hunger issues in the community. With this grant, Second Harvest will purchase additional totes to store and transport fresh green beans rescued through its innovative Green Bean Project, while keeping the beans fresher for longer. Town of Thomaston, Thomaston, Ala. The grant will be used by the Town of Thomaston—defined by the U.S. Department of Agriculture as a food desert—to supply a cold storage bin/produce box for Dave’s Market, which has agreed to locate in the town. With the new equipment the market will be able to provide fresh meats and produce to the citizens in and around Thomaston. Weinberg Northeast Regional Food Bank, Jenkins Township, Pa. The Weinberg Northeast Regional Food Bank provides food assistance to faith-based and non-profit community organizations to distribute to needy families in four counties in Northeast Pennsylvania: Luzerne, Lackawanna, Susquehanna, and Wyoming. By collecting donations of wholesome but unmarketable food from the food industry and distributing it to these organizations, the Food Bank works to reduce hunger and promote proper nutrition in addition to preventing food waste. The grant funds will be used to pay a portion of the operating lease expense for a new refrigerated box truck for the food bank operations. About CSX  CSX, based in Jacksonville, Florida, is a premier transportation company. It provides rail, intermodal and rail-to-truck transload services and solutions to customers across a broad array of markets, including energy, industrial, construction, agricultural, and consumer products. For nearly 190 years, CSX has played a critical role in the nation’s economic expansion and industrial development. Its network connects every major metropolitan area in the eastern United States, where nearly two-thirds of the nation’s population resides. It also links more than 240 short-line railroads and more than 70 ocean, river and lake ports with major population centers and farming towns alike.  More information about CSX Corporation and its subsidiaries is available at www.csx.com. Like us on Facebook (http://facebook.com/OfficialCSX) and follow us on Twitter (http://twitter.com/CSX). About The Conservation Fund At The Conservation Fund, we make conservation work for America. By creating solutions that make environmental and economic sense, we are redefining conservation to demonstrate its essential role in our future prosperity. Top-ranked for efficiency and effectiveness, we have worked in all 50 states since 1985 to protect more than 7.5 million acres of land. www.conservationfund.org

[CRRNJ] Tri-State Monthly Meeting 1/14/2016

TRI-STATE RAILWAY HISTORICAL SOCIETY
Presents Bill McKelvey
"Don Oberding: Trolley-Fest" 
3 decades of trolleys and urban electric railways 

Thursday, January 14, 2016, 7:00 PM
at the Bickford Theater of the Morris Museum

6 Normandy Heights Road, Morristown, NJ 07960

The January 14th meeting will kick off 2016 (our 52nd year) with Bill
McKelvey will sharing a selection of images a selected from the late Don
Oberding's extensive slide collection. Don seems to have travelled
extensively across the US and internationally and collected a wide variety
of trolley and urban electric railway subjects.

Most large cities across the country have had trolleys or some variation and
we are lucky to have these to see from the 1950's to the 1970's. Here is a
limited list of locations: Los Angeles, Chicago, Kansas City, St. Louis, San
Francisco, Atlanta, New Orleans, Boston, Detroit, Toronto, Mexico.

There seems to also be some other nuggets of other diverse operations
including steam. These images are not to be missed!

Admission is free, open to the public. All are welcome. The meeting will
begin at 7:15 p.m. The programs usually begin about 8:00 p.m. Light
refreshments are often available. We will have a selection of books, videos
and memorabilia for sale before the meeting. Visit us at
facebook.com/tristaterail.org or the web: TRISTATERAIL.ORG

Happy New Year from GSD & This Weekend Events

Greetings! Wishing all our Garden State Division Members A Happy, Healthy and Prosperous New Year. +++++++++++++++++++++++++++++++++++++++++++++++ Looking to see great Model Train Layouts? This weekend two of the clubs in the Garden State Division will be having open houses to celebrate the holiday season.  Following is information that has been passed on to us about their shows.  ++++++++++++++++++++++++++++++++++++++++++++++++++++++++++   The New York Society of Model Engineers 341 Hoboken Road  Carlstadt, New Jersey 07072 January 2 & 3, 2016 Saturday & Sunday Afternoons 1:00 to 6:00PM Donation ask $7 for adults; $1 for children under 12.    Web Site: ModelEngineers.org $1.00 off admission at Society Facebook page https://www.facebook.com/modelengineers/ ++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++   The Garden State Model Railway Club 575 High Mountain Road  North Haledon, New Jersey 07508 January 2 & 3, 2016 Saturday & Sunday Afternoons 1:00 to 5:00PM Adults $6, Children under 12 FREE with Adult Web Site:  http://www.gsmrrclub.org/    ++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ Save the Date the  GSD Winter Meet  January 23rd, 2016 9:00 am Start Location Dater Elementary School 35 School Street Ramsey,  NJ  For additional information click below Winter Meet Flier Snow date is February 6th, 2016 ++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ Like many of us, I have a shelf, NO it's a few shelves, and a few big Dell computer boxes full of unbuilt kits.  So, my New Year's resolution --  Take the first kit I lay hands on and build it, no matter what it is. Happy New Year, Andy Brusgard, e-mail clerk Garden State Division - National Model Railroad Assoc  Garden State Division National Model Railroad Assoc. http://www.nergsd.com  Contact@nergsd.com

Norfolk Southern Board of Directors Unanimously Rejects Publicly Disclosed, Revised Proposal from Canadian Pacific

 Received via e-mail

 Norfolk Southern Corporation (NYSE: NSC) (“the Company”) today announced that its board of directors has unanimously rejected Canadian Pacific’s (TSX:CP) (NYSE:CP) Dec. 16, 2015, publicly disclosed, revised proposal to acquire the Company for $32.86 in cash, a fixed exchange ratio of 0.451 shares in a new company that would own Canadian Pacific and Norfolk Southern, and 0.451 of a Contingent Value Right. 

The following is the text of the letter that was sent on Dec. 23, 2015, to Canadian Pacific’s Chief Executive Officer, E. Hunter Harrison, and its Chairman of the Board, Andrew F. Reardon.

December 23, 2015

Mr. E. Hunter Harrison                                                                                   Mr. Andrew F. Reardon

Chief Executive Officer                                                                                  Chairman of the Board

Canadian Pacific Railway                                                                               Canadian Pacific Railway

7550 Ogden Dale Road S.E.

Calgary, AB T2C 4X9

Canada

Dear Mr. Reardon and Mr. Harrison:

The board of directors of Norfolk Southern has carefully reviewed your latest revised proposal, which you publicly disclosed on December 16, but have not otherwise communicated to us. That review was conducted with the assistance of our independent financial, legal and regulatory advisors. In its review, the board noted that the only change from your prior proposal was to include a Contingent Value Right (“CVR”).

The board of Norfolk Southern has unanimously determined that your latest revised proposal is grossly inadequate, creates substantial regulatory risks and uncertainties that are highly unlikely to be overcome, and is not in the best interest of the Company and its shareholders. This would be the case even if the CVR had a value at the high end of the range suggested in your publicly filed presentation. In fact, our financial advisors believe that the CVR would trade at a significant discount.

In addition, you have not addressed the significant regulatory issues that we have previously identified. We do not believe that your voting trust structure would be approved. As you know, our view reflects careful analysis by our regulatory experts and is fully supported by two former Surface Transportation Board (“STB”) Commissioners. You have a path to seek a declaratory order from the STB as to whether the voting trust structure that you proposed could work. The STB has clear, statutorily-established authority to issue declaratory orders to remove uncertainty, and there is precedent for it in the voting trust context. No involvement by Norfolk Southern is required for you to seek a declaratory order regarding the legality of putting Canadian Pacific into a voting trust under your proposed structure. Your decision not to seek an order shows a lack of confidence in your proposed structure.

You continue to publicly declare that we are not “engaging” or “meeting” with you. There is no basis to meet until you both make a compelling offer and address the regulatory issues, which you have the ability to do by seeking a declaratory order. We also note your repeated public statements that you are not willing to increase your offer regardless of whether we were to meet.

The Norfolk Southern board of directors is focused on protecting the interests of our shareholders. It would be inconsistent with the duties of the board to pursue a risky and uncertain offer that substantially undervalues the Company. Accordingly, the board of directors has unanimously rejected your latest revised proposal.

Sincerely,

/S/                                                                                                                          /S/

Jim Squires                                                                                                         Steven Leer

Chairman, President and                                                                              Lead Director

Chief Executive Officer

Morgan Stanley & Co. LLC and Bank of America Merrill Lynch are acting as financial advisors to Norfolk Southern Corporation and Skadden, Arps, Slate, Meagher & Flom LLP, Hunton & Williams LLP and Morrison & Foerster LLP are acting as legal advisors.

Norfolk Southern announces additional actions to improve efficiency and reduce operating costs

 received via e-mail

NORFOLK VA., Dec. 22, 2015 – Norfolk Southern (NYSE: NSC) announced today it will consolidate operations of its coal docks located on Lake Erie in Northern Ohio. This change will streamline operations for customers while improving network efficiency and reducing operating costs for Norfolk Southern.

NS plans to idle its Ashtabula, Ohio, Coal Pier and shift operations to the railroad’s Sandusky, Ohio, Dock. Ashtabula will continue to operate until all coal inventories have been transloaded, which is expected to be completed by May 2016. The facility will remain idled until and if market conditions warrant reopening.

“Norfolk Southern is committed to providing shippers with an efficient transportation network, and we are actively addressing the industry-wide decline in coal volumes by streamlining operations and positioning our railroad for long-term success,” said David Lawson, NS vice president coal marketing.

The consolidation will help Norfolk Southern achieve efficiencies by reducing capital investment requirements and employee headcount.  A total of 21 positions will be affected as part of the transition. These employees can apply for other positions at the company. Earlier this month 13 employees at Ashtabula were furloughed due to coal market conditions. Six employees will continue to oversee security and environmental systems at Ashtabula.

Norfolk Southern has owned and operated the Ashtabula coal pier since 1999.  The facility primarily serves the thermal coal market, transloading coal from Ohio, Pennsylvania, and West Virginia to Canada and U.S. destinations by ship. CSX also has rights to use the Ashtabula dock.

“Coal has been – and continues to be – a significant part of Norfolk Southern’s heritage of service and success,” said Mike Wheeler, NS senior vice president operations. “Our customers depend on us to provide a high-performing, 21^st Century transportation option that is safe, efficient, and reliable. Norfolk Southern is adapting to evolving market conditions by realizing efficiencies and optimizing our infrastructure to support long-term growth.”

Ohio is a strategic part of Norfolk Southern’s 22-state rail network. NS operates 2,200 miles of track and employs more than 3,700 people in the state, providing connections to domestic and international markets for Ohio-based manufacturers and businesses.  In 2014, NS doubled the size of its Bellevue, Ohio, yard in a $160 million expansion project, creating the largest rail classification yard in the eastern U.S.

About Norfolk Southern

Norfolk Southern Corporation (NYSE: NSC) is one of the nation’s premier transportation companies. Its Norfolk Southern Railway Company subsidiary operates approximately 20,000 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, automotive, and industrial products.

Denver Union Station at Night, Lit Up for Christmas

Received Via E-Mail from Nathan Clark

Two really neat night photographs taken by a dear friend from high school and college days who now lives near Denver. Recalling my interests in railroading, she forwarded these pictures of how the season is celebrated at this restored downtown landmark that dates back to 1881. She also shared a bunch of interior and daylight exterior views. An example of a stellar structure that was notleveled during America's 'urban renewal' blitz in the Sixties and Seventies to make another parking lot.

The red and green streaks in the sky to the right of the station in the first (more distant) shot are Christmas lights strung out onto the horizontal booms of tower cranes in the background, looming high above city center construction sites. A number of such cranes were similarly adorned in Denver, as were their vertical towers...a nice touch on the city's night horizon. The amount of effort involved in stringing all of those lights in those precarious places astounds even me, who climbed a fair number of tall towers a few decades back. 

Enjoy these images and have a Happy New Year!

Received Via E-Mail

In contrast to my dawn panned view on December 12 of one of the four LASCO Umformtechnik GmbH forge components on heavy-duty flat cars at Cresson, PA, here is a full daylight view of one taken the previous day at Norfolk Southern's Enola Yard near Harrisburg. The foursome was destined for Ellwood Crankshaft's $80 million project to convert the former Sharon Westinghouse plant's Z Building along Sharpsville Avenue to manufacturing the largest internal combustion engine crankshafts in the world. One wag observing the U-shaped frame components suggested that 'U might stand for ugly', but I think the residents of Mercer County would counter that the tremendous investment in the Shenango Valley that has brought these new industrial machines to town represents a thing of beauty.

An idea of what the two enormous forges (assembled from the four frame pieces) will look like in service, above and below the plant floor, can be seen in the illustrations under the headings of 'Performance', 'Innovation' and 'Safety' on pages 11-13 of this manufacturer's brochure:
    http://www.lasco.de/umformtechnik/media/archive2/technische_informationen/Hydraulische_Schmiedehaemmer_2012_E.pdf