Norfolk Southern: Creating Options for Ohio Shippers
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1 Norfolk Southern: Creating Options for Ohio Shippers Mid America Association of State Transportation Officials 20 July 2011 Randy Bayles Group Manager National Accounts
2 3 Norfolk Southern Network Norfolk Southern System NS Network NS Intermodal Routes Track Miles: 30,700 miles Main Line 65% Yard and Other 35% Route Miles: 21,362 miles 66,990 Bridges and Culverts 28,000 Employees 3,800 Locomotives 350 to 500 road trains per day
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5 Growth Continues in the Intermodal Space Rising freight demand Domestic International from both coasts Continued demand for logistics savings Increasing demand for higher quality intermodal services in mile lanes Increasing environmental awareness Increasing motor carrier costs and capacity constraints Increasing view by public transportation officials that freight rails can be part of the freight capacity solution
6 Public Benefits of Rail Rail is almost entirely privately-funded Fuel Conservation Environmental Advantages Public Safety Rail mitigates growing highway congestion Rail is lower cost and helps businesses compete
7 Helping Businesses Compete Average Inflation-Adjusted RR Rates* Down 55% Since 1981 *Average revenue per ton-mile, Class I railroad, 2009 dollars. Source: AAR
8 Norfolk Southern s Intermodal Network Chicago 47th Street 63 rd Street Landers Calumet Ashland Ave Detroit Livernois Delray Toledo Cleveland Buffalo Harrisburg/ Rutherford Taylor Albany Bethlehem Ayer NY/NJ Croxton Erail Elizabeth Marine Terminal NYCT PNCT Columbus Pittsburgh Morrisville/Navy Yard Baltimore Decatur Cincinnati Front Royal Kansas City St Louis Gest Street Sharonville Louisville Georgetown Norfolk Buechel Norfolk Int l Terminal Appliance Park Greensboro Portsmouth Marine Terminal Newport News Marine Terminal APM Terminal Memphis Huntsville Charlotte Atlanta Dallas Shreveport Meridian Birmingham Austell Inman Savannah Mason ICTF Port Wentworth Charleston/ Marine Terminal NS Intermodal Network Intermodal Network Haulage Extensions New Orleans Jacksonville Titusville Intermodal Terminals On-Dock Access Interchange Gateways Ft Lauderdale Hub / Load Centers Miami
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10 Norfolk Southern in Ohio ,208 Rail Route Miles 3,425 NS Employees Over $200,000,000 Payroll $317,000,000 Purchases and Payments $16,300,000 State and Local Taxes Serve over 1,000 businesses directly Cost-Effective Freight Connection to the Nation and the World
11 2010 NS Traffic To, From, Within and Through Ohio 3,667,701 shipments 174,819,653 tons of freight Equiv. to 10,501,263 tractor-trailer loads Does not include empty returns Roughly equiv. to 18,500,000 truck trips
12 Ohio Intermodal Options Terminal Type 2010 Volume Cincinnati Intermodal 97,473 Cleveland Intermodal 82,988 Toledo Sandusky Cleveland Columbus Intermodal 138,948 Toledo Intermodal 35,365 Sandusky Triple Crown 36,374 Columbus Ohio Intermodal by Line of Business Cincinnati 9% 23% 68% In 2010, 12.6% of all NS intermodal units either originated in or were destined to Ohio. Domestic International Premium
13 Overview of Traffic Flows to/from Ohio
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15 The Heartland Corridor Detroit Chicago Columbus Heartland Corridor Pritchard Roanoke Norfolk The Heartland Corridor Public-Private Partnership First Trains September 9, 2010!
16 The Heartland Corridor $191 million multi-faceted Intermodal capacity enhancement project Double-stack clearance on the most direct rail route between the Midwest and Mid-Atlantic regions New Intermodal terminal at Columbus Public-Private Partnership NS Ohio West Virginia Virginia Federal Government
17 Hampton Roads NNMT New Central Rail Operation completed at NIT - $27 Million Proposed Craney Island Marine Terminal Hampton Roads Harbor NIT APMT VA on-dock rail operational APMT rail relocation complete end of 2007 Craney Island Future Capacity APM/Maersk Terminal PMT
18 Central Tunnel Project Status Total Complete as of 7/15/10 % Complete Tunnel Length (Linear feet) 28,843 28, % Number of Tunnels % Other obstructions %
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20 Cowan Tunnel - After
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22 Columbus Rickenbacker 4 Support Tracks (14,000 ) 3 Pad Tracks (9,300 ) Expanded Leads to/from Mainline 4 Overhead Cranes / 1 Sideloader Equipment Maintenance Building Annual Lift Capacity 250,000 Neighboring Lots are owned by CRAA and may be developed for CY facilities, etc. High Speed Automated Gate System 125 Acres Expandable up to 300 acres 1,888 Wheeled Parking Spots 408 Stacked Spaces (2 high)
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25 Rickenbacker Global Logistics Park The Rickenbacker logistics park and FTZ integrates Intermodal, carload, air freight and logistics capabilities 15,000 acres of existing or planned development, Over 39 million sq ft of existing development Located 18 miles from Columbus Anchored by NS new Intermodal facility and the Rickenbacker airport
26 Alum Creek Drive Serves as the only direct connection between Rickenbacker and the Interstate System Federal Highway Administration Intermodal Connector Serious challenges Congestion issues, that challenge Rickenbacker s success Quality of life of local residents.
27 What s the Problem? Groveport Road Intersection is the Constraining Point Long Queues on Groveport Road Long Northbound Queues Constrains Northbound Traffic at Ramps Southbound Queues exceed available storage between intersections Southbound backups impede traffic at the Ramp intersections EB Off Ramp Queues extend onto Freeway Mainline
28 The Heartland Corridor and Secondary Projects Detroit Chicago Toledo Toledo Columbus Cincinnati Heartland Corridor Pritchard Roanoke Norfolk The Heartland Corridor and Heartland Secondary Projects Public-Private Partnership
29 Ohio Public Private Partnerships Col to Cinci Double Stack Clearances Five Double Stack Clearance (DSC) Projects - Three track under cuttings - Two bridge modifications 2 Rickenbacker 3,000 ft block swap tracks Completion Goals Columbus - Rickenbacker tracks completed - Clearance projects Fall 2011 Track Undercutting Bridge Modification Block Swap Tracks Cincinnati
30 Ohio Public Private Partnerships Toledo Airline Project Track and extensive signal upgrades Allows more intermodal trains to work Airline Terminal Improved flow through Toledo for Columbus traffic to/from Chicago and NY Projected completion in Oct 2011 Closure of Westwood Ave Grade Crossing Improved crossing at Dorr St with traffic signal pre-emption
31 Ohio Public Private Partnerships Financials Heartland Connector - Columbus to Cincinnati DSC Estimated Cost $6.07 M $3.6 M Federal ARRA $1.07 M CMAQ (OKI Region) $1.4 M NS Capital Toledo Airline Project Estimated Cost $12.3 M $ 6.5 M Federal ARRA $ 2.75 M ODOD LDSP Funds $ M Grade Crossing Safety $ 2.6 M NS Capital
32 Heartland Corridor/East Coast Access With the completion of the Heartland Corridor and connectors, we will have improved access to more locations in the Ohio Valley: Columbus Cincinnati Improved access to ports in: Norfolk Charleston Savannah Jacksonville
33 Creating Options for Ohio The Heartland Corridor is completed, but NS will continue to invest in projects that will benefit all of Ohio NS has the assets in place to provide multiple options for efficient Intermodal services for Ohio shippers Intermodal terminals in Ohio s key metropolitan areas Double stack routes to New York/New Jersey and Norfolk Efficient interchange in Chicago to reach points West Potential to reach Florida and the SE ports Going forward, we look forward to growing our partnership with various shippers and other entities to identify additional benefits for Ohio
34 Thank You Thank You
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