The Role of Logistics in the SoutheastWhy does this matter?

Jeff Heller, Norfolk SouthernFreight in the Southeast ConferenceMarch 15, 2012

Key Drivers for Continued Intermodal Investment

• Rising demand for logistics savings from shippers and BCOs

• Shifting long-term supply chain patterns– Shorter haul service (250 – 1200 mi) or

(400-1930 km)– Higher quality service demands– International from both coasts

• Continued, but tempered, U.S. economic growth

• Increasing environmental awareness

• Increasing motor carrier costs and capacity constraints

The Single Largest Challenge: Highway Capacity

2007 Peak Period Congestion

2040 Peak Period Projected

Total US Intermodal Units Originated

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

Source: AAR

NS 1-81 Corridor Traffic

Dallas

Memphis

Savannah

Mason ICTF

Charleston

NS Intermodal Terminal

North Charleston Marine Terminal

Jacksonville

NS Intermodal Terminal

Talleyrand Marine Terminal

Shreveport Gateway

New Orleans

Atlanta

CharlotteHuntsville

Birmingham

Front Royal

Harrisburg

NY/NJ

Greensboro

Norfolk

Norfolk International Terminal

Portsmouth APMT Terminal

Newport News Marine Terminal

NS Norfolk-Midwest and Southeast Corridors

Chicago

Norfolk

Norfolk International Terminal

Portsmouth APMT Terminal

Newport News Marine TerminalMemphis

Dallas

DetroitCleveland

ColumbusKansas City

Front Royal

Harrisburg

NY/NJ

Cincinnati

Greensboro

Atlanta

Louisville

Birmingham

Huntsville

St. Louis

Decatur

New Orleans

AtlantaAustell

Inman

Charlotte

Chicago47th Street

63rd Street

Landers

Calumet

Ashland Ave

Columbus

DetroitLivernois

Delray

SavannahMason ICTF

Port Wentworth

Miami

CincinnatiGest Street

Sharonville

Harrisburg/ Rutherford

Front Royal

NorfolkNorfolk Int’l Terminal

Portsmouth Marine Terminal

Newport News Marine Terminal

APM Terminal

New Orleans

Dallas

Huntsville

Jacksonville

Charleston/ Marine Terminal

Georgetown

Kansas CitySt Louis

LouisvilleBuechel

Appliance Park

Baltimore

Greensboro

Toledo

Decatur

TaylorCleveland

Pittsburgh

AyerAlbany

Buffalo

Titusville

NY/NJCroxton Erail

Elizabeth Marine Terminal

NYCT PNCT

Bethlehem

Morrisville/Navy Yard

Shreveport

Ft Lauderdale

Meridian

NS Intermodal NetworkIntermodal Network

Haulage Extensions

Intermodal Terminals

On-Dock Access

Interchange Gateways

Hub / Load Centers

NS Intermodal NetworkIntermodal Network

Haulage Extensions

Intermodal Terminals

On-Dock Access

Interchange Gateways

Hub / Load Centers

Memphis

Birmingham

Norfolk Southern’sCorridor Network

Completion Dates

Premier 1995

Titusville 2009

MSLLC 2011

Heartland 2011

PanAm Southern 2012

Crescent Ph I 2012

Completion Dates

Premier 1995

Titusville 2009

MSLLC 2011

Heartland 2011

PanAm Southern 2012

Crescent Ph I 2012

HeartlandCorridor

Titusville

Meridian Speedway

Crescent Corridor

PanAm SouthernCorridor

Premier Corridor

Panama Canal - 2014

• In preparation for the Panama Canal widening, NS will have completed:– New Columbus Terminal– The Heartland Corridor– The Meridian Speedway– The Pan-Am Southern Corridor– New Birmingham Terminal– New Memphis Terminal

• Our capacity initiatives will be c will continue with a focus on enhancing network efficiency and eliminating cost

“Take Aways…”

• Highway and Truck Capacity will become increasingly constrained in the future

• Intermodal movement of International container freight will increase through East Coast Ports

• Public and Private investment in rail infrastructure will be required to accommodate the growth and keep freight moving throughout the Southeast

Thank You