Intermodal Is There a Change In Direction

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Intermodal Is There a Change In Direction?

• Jeffrey S. Heller
• Assistant Vice President International
  Marketing
• Norfolk Southern

2
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

3
The East Coast has Led Import Growth Over the
Last12 Months
WC LAX, LGB, OAK, PDX, SEA, TAC EC NYC, BAL,
ORF, CHS, SAV
Source Port Websites
4
AAR Data Would Suggest a Regionalization of IM
Freight As Well
0.0
-2.6
-5.1
-6.5
East NS, CSX, FEC West BNSF, UP, KCS
Source AAR, Cumulative through Week 19
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And NS Own Data Suggests a Shift to the East
Coast
Westbound Forwarded Empty -23.4
EC Eastbound Empty -24.0
EC Exports 11.2
Transpacific Exports -0.3
EC Imports 20.6
Transpacific Imports -18.9
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So, is NS building for a world dominated by East
Coast Intermodal port shipments?
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NS Core Intermodal Network
Norfolk Southern System NS Intermodal
Routes Clearance Restrictions
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NS Core Intermodal Network The Golden Triangle
Norfolk Southern System NS Intermodal
Routes Clearance Restrictions
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NS Core Intermodal Network Key Interchanges
Norfolk Southern System NS Intermodal
Routes Clearance Restrictions
Key Gateways
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NS Core Intermodal Network East Coast IM Ports
Norfolk Southern System NS Intermodal
Routes Clearance Restrictions
Key Gateways EC Ports
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NS Core Intermodal Network Meridian Speedway
West Coast
Norfolk Southern System NS Intermodal
Routes Clearance Restrictions
Norfolk Southern System NS Intermodal
Routes Clearance Restrictions
Meridian Speedway
East Coast
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NS Core Intermodal Network Crescent Corridor
Norfolk Southern System NS Intermodal
Routes Clearance Restrictions
Norfolk Southern System NS Intermodal
Routes Clearance Restrictions
Crescent Corridor
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NS Core Intermodal Network Heartland Corridor
East Coast
West Coast
Norfolk Southern System NS Intermodal
Routes Clearance Restrictions
Norfolk Southern System NS Intermodal
Routes Clearance Restrictions
Heartland Corridor
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Why The Heartland?
Chicago
Cleveland
Harrisburg
Columbus
Kenova
The Port of Virginia
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Heartland Corridor Work in Progress
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Other Key Developments on HeartlandAPM Virginia
Western Freeway Relocation Project
Intermodal Rail Terminal
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Other Key Developments on HeartlandColumbus
Rickenbacker GLP
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Columbus Rickenbacker GLPBi-Coastal On-Dock
Access
NS Served Intermodal Facility NS BNSF UP
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NS Core Intermodal Network Patriot Corridor
West Coast
Norfolk Southern System NS Intermodal
Routes Clearance Restrictions
Norfolk Southern System NS Intermodal
Routes Clearance Restrictions New
England Corridor
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• 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

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NS Core Intermodal Network 4 Corridor Strategy
Norfolk Southern System NS Intermodal
Routes Clearance Restrictions
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AL GA Division Infrastructure Improvements -
44.2 Million
Irvington Siding
Oldham Siding
Cohutta Howardville 5 Mi. Double
Macon Bypass
Austell 2nd Lead
Arabi Siding
Lacy Siding
Fargo Siding
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Columbia to Charleston Line Improvements - 12
Million
Rowesville Siding
Ridgeville Siding
Kingville Siding
Kingville Connection
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Austell, GA Parking and Track

• 1 mi. support track March 07
• 438 parking spaces June, 07
• Total - 10.7 million

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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

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