Norfolk Southern combines railway operating regions to streamline operations, drive profitability, and support quality service
NORFOLK,
Va., March 1, 2016 – Norfolk Southern today announced it is
consolidating its three operating regions into two, effective March 15.
The decision to further streamline railroad operations is part of the
company’s ongoing execution of its five-year strategic plan, announced
in December 2015, to enhance operating efficiencies, reduce costs, drive
profitability, and accelerate growth. As previously announced, NS is
targeting annual expense savings of $650 million by 2020.
“We are committed to aggressively controlling
costs while delivering the high levels of superior service that our
customers value,” said Mike Wheeler, executive vice president and chief
operating officer. “Consolidating our operating regions will generate
productivity savings, not only through right-sizing, but also by
leveraging advancements in train dispatch technologies that support more
fluid and efficient movement of freight across the network. As we
continue to execute on our five-year strategic plan, we are confident
that these steps will make Norfolk Southern a faster, lower-cost, and
more profitable railroad.”
Earlier this year, Norfolk Southern streamlined
division operations by combining the former Virginia and Pocahontas
divisions into a larger Pocahontas Division. This became effective Feb.
1, and followed other key strategic initiatives including the reduction
from three corporate office locations to two, restructuring of the
Triple Crown Services subsidiary, integration of the D&H South Line
to increase options for shippers, and idling of certain parts of the
‘West Virginia Secondary’ line.
Norfolk Southern’s network spans 22 states in the
eastern U.S. The railroad presently manages train operations across 10
operating divisions that are part of three larger operating regions –
the Eastern, Western, and Northern regions.
Under the new structure, effective March 15,
Norfolk Southern’s network will be divided into Northern and Southern
regions only. The Northern Region will include the Harrisburg,
Pittsburgh, Dearborn, Lake, and Illinois divisions. Greg Comstock, a
41-year veteran of Norfolk Southern operations, will be the region’s
general manager. The region’s chief engineers will be Eddie Otey,
maintenance of way and structures, and Mick Ireton, communications and
signals. The Southern Region will include the Piedmont, Alabama,
Georgia, Central, and Pocahontas divisions. Todd Reynolds, a 22-year
veteran of Norfolk Southern operations, will be the region’s general
manager. The region’s chief engineers will be Lucious Bobbitt,
maintenance of way and structures, and Randall Smith, communications and
signals.
Each of the two consolidated regions will support
approximately 1,000 daily crew starts for long-haul train operations,
connecting customers and communities to global markets with freight rail
that moves consumer goods, automobiles, coal, grain, and products essential to U.S. households, businesses, and industries.
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.
Forward-Looking Statements
Certain statements
herein are “forward-looking statements” within the meaning of the “safe
harbor” provisions of the Private Securities Litigation Reform Act of
1995, as amended. These statements relate to future events or the
Company’s future financial performance and involve known and unknown
risks, uncertainties and other factors that may cause the actual
results, levels of activity, performance or achievements of the Company
or its industry to be materially different from those expressed or
implied by any forward-looking statements. In some cases,
forward-looking statements can be identified by terminology such as
“may,” “will,” “could,” “would,” “should,” “expect,” “plan,”
“anticipate,” “intend,” “believe,” “estimate,” “project,” “consider,”
“predict,” “potential” or other comparable terminology. The Company has
based these forward-looking statements on management’s current
expectations, assumptions, estimates, beliefs and projections. While the
Company believes these expectations, assumptions, estimates, and
projections are reasonable, such forward-looking statements are only
predictions and involve known and unknown risks and uncertainties, many
of which involve factors or circumstances that are beyond the Company’s
control. These and other important factors, including those discussed
under “Risk Factors” in the Company’s Form 10-K for the year ended Dec.
31, 2015, as well as the Company’s subsequent filings with the
Securities and Exchange Commission, may cause actual results,
performance or achievements to differ materially from those expressed or
implied by these forward-looking statements. The forward-looking
statements herein are made only as of the date they were first issued,
and unless otherwise required by applicable securities laws, the Company
disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new
information, future events or otherwise. Copies of Norfolk Southern
Corporation’s press releases and additional information about the
Company are available at www.norfolksouthern.com or you can contact the Norfolk Southern Corporation Investor Relations Department by calling 757-629-2861.
Important Additional Information and Where to Find It
Norfolk Southern
Corporation (the “Company”), its directors and certain of its executive
officers and employees may be deemed to be participants in the
solicitation of proxies from stockholders in connection with the
Company’s 2016 Annual Meeting of Stockholders (the “2016 Annual
Meeting”). The Company plans to file a proxy statement with the
Securities and Exchange Commission (the “SEC”) in connection with the
solicitation of proxies for the 2016 Annual Meeting (the “2016 Proxy
Statement”). Additional information regarding the identity of these
potential participants, none of whom owns in excess of 1 percent of the
Company’s shares of Common Stock, and their direct or indirect
interests, by security holdings or otherwise, will be set forth in the
2016 Proxy Statement and other materials to be filed with the SEC in
connection with the 2016 Annual Meeting. This information can also be
found in the Company’s definitive proxy statement for its 2015 Annual
Meeting of Stockholders (the “2015 Proxy Statement”), filed with the SEC
on March 25, 2015, or the Annual Report on Form 10-K for the year ended
Dec. 31, 2015, filed with the SEC on Feb. 8, 2016 (the “Form 10-K”). To
the extent holdings of the Company’s securities by such potential
participants have changed since the amounts printed in the 2015 Proxy
Statement, such changes have been or will be reflected on Statements of
Ownership and Change in Ownership on Forms 3 and 4 filed with the SEC.
STOCKHOLDERS ARE URGED
TO READ THE 2016 PROXY STATEMENT (INCLUDING ANY AMENDMENTS OR
SUPPLEMENTS THERETO), 2015 PROXY STATEMENT, FORM 10-K AND ANY OTHER
RELEVANT DOCUMENTS THAT THE COMPANY HAS FILED OR WILL FILE WITH THE SEC
CAREFULLY IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL
CONTAIN IMPORTANT INFORMATION.
Stockholders will be
able to obtain, free of charge, copies of the 2016 Proxy Statement (when
filed), 2015 Proxy Statement, Form 10-K and any other documents
(including the WHITE proxy card) filed or to be filed by the Company
with the SEC in connection with the 2016 Annual Meeting at the SEC’s
website (http://www.sec.gov) or at the Company’s website (http://www.nscorp.com)
or by writing to Denise Hutson, Corporate Secretary, Norfolk Southern
Corporation, Three Commercial Place, Norfolk, Virginia 23510.
