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Intermodal – Is There a Change In Direction? Jeffrey S. Heller Assistant Vice President – International Marketing Norfolk Southern
Intermodal – Is There a Change In Direction?
Jeffrey S. HellerAssistant Vice President – International MarketingNorfolk Southern
Our Position East Coast all-water or Suez trade is growing and
may grow to as much as 40% of total Asian imports
However, West Coast port freight is dominant and will remain that way
Our strategy contemplates growth from both coasts
The East Coast has Led Import Growth Over the Last12 Months
-15%
-10%
-5%
0%
5%
10%
15%
Apr-07 May-07
Jun-07 Jul-07 Aug-07
Sep-07
Oct-07 Nov-07
Dec-07
Jan-08 Feb-08
Mar-08
Total Imports US WC Imports US EC Imports
Source: Port Websites
WC: LAX, LGB, OAK, PDX, SEA, TAC EC: NYC, BAL, ORF, CHS, SAV
AAR Data Would Suggest a Regionalization of IM Freight As Well
0 1,000 2,000 3,000 4,000 5,000
We
st
Ori
gin
ati
on
sE
as
tO
rig
ina
tio
ns
(in 000's)
2008 2007
East: NS, CSX, FEC: West: BNSF, UP, KCSSource – AAR, Cumulative through Week 19
0 1,000 2,000 3,000 4,000 5,000
WestTotal
EastTotal
(in 000's)
2008 2007
0.0%
-5.1%
-2.6%
-6.5%
And NS’ Own Data Suggests a Shift to the East Coast
NS International Traffic with an
East Coast Focus
2006: 42%
2007: 49%
2008 YTD: 52%
NS International Traffic with a West Coast
Focus
2006: 58%
2007: 51%
2008 YTD: 48%
Westbound Forwarded Empty -23.4%
Transpacific Exports-0.3%
Transpacific Imports-18.9%
EC Exports +11.2%
EC Eastbound Empty -24.0%
EC Imports +20.6%
So, is NS building for a world dominated by East Coast Intermodal port shipments?
Norfolk Southern System
NS Intermodal Routes
Clearance Restrictions
NS’ Core Intermodal Network
Norfolk Southern System
NS Intermodal Routes
Clearance Restrictions
NS’ Core Intermodal NetworkThe Golden Triangle
Norfolk Southern System
NS Intermodal Routes
Clearance Restrictions
Key Gateways
NS’ Core Intermodal NetworkKey Interchanges
Norfolk Southern System
NS Intermodal Routes
Clearance Restrictions
Key Gateways
EC Ports
NS’ Core Intermodal NetworkEast Coast IM Ports
Norfolk Southern System
NS Intermodal Routes
Clearance Restrictions
Norfolk Southern System
NS Intermodal Routes
Clearance Restrictions
Meridian Speedway
West Coast
East Coast
NS’ Core Intermodal NetworkMeridian Speedway
Norfolk Southern System
NS Intermodal Routes
Clearance Restrictions
Norfolk Southern System
NS Intermodal Routes
Clearance Restrictions
Crescent Corridor
NS’ Core Intermodal NetworkCrescent Corridor
Norfolk Southern System
NS Intermodal Routes
Clearance Restrictions
Norfolk Southern System
NS Intermodal Routes
Clearance Restrictions
Heartland Corridor
West Coast
East Coast
NS’ Core Intermodal NetworkHeartland Corridor
Columbus
The Port of Virginia
Harrisburg
Kenova
Chicago Cleveland
Heartland Corridor
Why The Heartland?
Heartland Corridor: Work in Progress
Other Key Developments on HeartlandAPM Virginia
Intermodal Rail Terminal
Western Freeway Relocation Project
Other Key Developments on HeartlandColumbus Rickenbacker GLP
NS Served Intermodal Facility
NS
BNSF
UP
Columbus Rickenbacker GLPBi-Coastal On-Dock Access
Norfolk Southern System
NS Intermodal Routes
Clearance Restrictions
Norfolk Southern System
NS Intermodal Routes
Clearance Restrictions
New England Corridor
NS’ Core Intermodal NetworkPatriot Corridor
West Coast
Pan Am Southern (PAS) will operate:
• Between Rotterdam Jct., NY and Ayer, MA
• Between White River Jct., VT and New Haven/Derby, CT.
The main line – denoted in blue – is “The Patriot Corridor”
Norfolk Southern System
NS Intermodal Routes
Clearance Restrictions
NS’ Core Intermodal Network4 Corridor Strategy
AL & GA Division Infrastructure Improvements - $44.2 Million
Oldham SidingIrvington
SidingCohutta
Howardville5 Mi. Double
Austell2nd Lead
Macon Bypass
Arabi Siding
Fargo Siding
Lacy Siding
Columbia to Charleston Line Improvements - $12 Million
KingvilleSiding
KingvilleConnection
RowesvilleSiding
Ridgeville
Siding
Austell, GA Parking and Track
• 1 mi. support track – March ‘07
• 438 parking spaces – June, ‘07
• Total - $10.7 million
Summary NS believes that freight growth from both coasts
is likely in the future, but that East Coast Port freight may grow faster
The choice of coast of entrance will be driven by factors well beyond the control of NS
Our corridor and terminal investments are clearly balanced to serve both East Coast and West Coast customers
