Robert%20E.%20Mart

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Robert E. MartínezNorfolk Southern Corporation

• Indiana Logistics Summit
• Indianapolis
• November 14, 2006

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Markets, Transportation Markets, Market Change
and Transportation PolicyandThe Economics of
Rail
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Railroads are Highly Capital Intensive
Source JPMorgan Estimates and Company Reports.
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Capex/Revenue in Industrial Sectors
Source JPMorgan Estimates and Company Reports.
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The railroad industry has not been earning its
cost of capital
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NS Principles on Public/Private Partnerships

• No safety degradation
• Voluntary on both sides
• Public sector pays for public or societal
  benefits
• Norfolk Southern pays for railroad benefits
• Benefits, costs and risks are shared
  proportionately

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NS Principles on Public/Private Partnerships
(contd)

• NS commits to performance standards in return for
  public participation
• Planning must be coordinated among all
  stakeholders to ensure prudent investments
• Planning must be executed in a manner consistent
  with rail regulatory requirements, ownership
  rights, and market conditions
• The project must produce a more balanced
  transportation policy

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NS Business Mix by RevenueQ3 05 Q2 06 Revenue
9.107 Billion
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Long Term Conventional Intermodal Volume Growth
Y-T-D 2006 vs. Y-T-D 2005
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Intermodal Network
33 NS Terminals 19 Private / Port Terminals 8,300
Route Miles
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Hub and Spoke Network how it works -
(From PNW)
(From So-Cal)
(From So-Cal)
33 NS Terminals 19 Private / Port Terminals 8,300
Route Miles
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Norfolk Southern IntermodalTranscon Network
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Panama Canal
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Suez Canal
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East Coast Port Services
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The Norfolk Southern Intermodal System
Map Doublestack Clearances
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Central Corridor Double-Stack Project The
current clearance envelope through western
Virginia, West Virginia and Kentucky only
accommodates railcars up to 191 multi-levels.
No double-stack cars can be accommodated due to
the height, as well as the square profile of the
conveyance.
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Chicago
Cleveland
Harrisburg
Columbus
Prichard
Kenova
Roanoke
The Port of Virginia
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The Heartland Corridor
COMPONENT LEGEND
Central Corridor Double-Stack Initiative
Prichard Intermodal Terminal
Roanoke Region Intermodal Terminal
Rickenbacker Intermodal Terminal
Commonwealth Railway Mainline SafetyRelocation Project (CRMSRP)
664
NIT
CIMT(Proposed)
CIDMMA
Norfolk
APM
164
Portsmouth
PMT
264
664
264
464
CRMSRP Project (Median Rail)
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