NS Launches Initiatives for Growth

NS Adds to Infrastructure To Improve Rail Network

NS construction at Bison Yard at Buffalo, N.Y., helps improve service for Buffalo, western New York and the Southern Tier route on the new Northern Region. (Click image for larger version.)

In 1999, NS had under way some $250 million in infrastructure improvements to enhance operations on its expanded rail system.

The improvements are designed to increase the railroad system's ability to attract business and to enhance service reliability.

Key elements include:

• Additional double track and improved signals on NS' main east-west route in Pennsylvania between northern New Jersey/ Philadelphia and Chicago
• Capacity enhancements on core routes in Ohio from Bellevue to Columbus and Toledo
• Creation of a bypass route around Atlanta by upgrading rail, crossties and bridges on a former secondary line

Also, NS completed in 1999 a project to clear the Pattenburg tunnel in New Jersey for double-stack operation. This provides NS two double-stack routes serving New Jersey, linking the Northeast with the Midwest and Southeast and greatly enhancing intermodal operating efficiency and service capacity.

Investing in Customer Service: NS to Spend $747 Million

Bill Hawkins, general yardmaster in the tower at Conway Yard, Pittsburgh, checks systems information to ensure proper car classification. Conway, on the Northern Region, is the largest classification yard on NS.

NS has announced plans to spend $747 million for capital improvements to its railroad operations in 2000.

In addition, NS plans to acquire 150 new six-axle, high-adhesion locomotives in 2000 under a lease financing arrangement.

The anticipated spending includes $576 million in roadway spending and $143 million in equipment spending.

Roadway spending includes:

• $284 million for rail, crosstie, ballast and bridge programs
• More than $110 million for additional track, such as construction of passing sidings and installa- tion of double track on key routes
• $75 million for new or expanded intermodal facilities
• $32 million for marketing and industrial development initiatives
• $30 million for signal and electrical projects
• $22 million for environmental projects and public improvements, such as grade crossing separations and crossing signal upgrades

Equipment spending includes $72 million for upgrading existing locomotives, purchasing 255 multilevel automobile racks, rebodying coal and coke hoppers and modifying open coil cars.

NS also plans to lease 475 articulated bilevels for automotive service.

Additional equipment spending includes $23 million for computer-related projects and $35 million for maintenance equipment and highway vehicles.

Thoroughbred Mechanical Services Sets the Stage For New Business

The car repair shop at Hollidaysburg, Pa., on NS' Northern Region, is a key to the new business opportunities being developed by the Thoroughbred Mechanical Services division. (Click image for larger version.)

In 1999, NS opened the doors of its Mechanical shops to others.

This sets the stage for new business opportunities for NS.

Thoroughbred Mechanical Services provides locomotive, railcar and maritime repairs, building and rebuilding.

NS operates locomotive repair shops at Altoona, Pa., and Roanoke, Va.; car repair shops at Roanoke and Hollidaysburg, Pa.; and wheel shops at Knoxville, Tenn., and Hollidaysburg.

The shops meet stringent standards for safety and quality work set by the Association of American Railroads.

New Intermodal Subsidiary Offers Door-to-Door Service

In 1999, NS created a new subsidiary to provide door-to-door service for shippers of time-sensitive business.

Known as Thoroughbred Direct Intermodal Services (TDIS), the new company designs transportation logistics. It uses a combination of conventional rail intermodal service, RoadRailer(r) equipment and motor carriers to meet customers' transportation needs.

TDIS offers a single point of contact and provides shipment security for customers.

Key customers of TDIS include the U.S. Postal Service and others whose business is time-sensitive, such as those who ship bulk mail products and printed materials.

START: A Positive Approach To Rules Compliance

In cooperation with the United Transportation Union and the Brotherhood of Locomotive Engineers, NS developed a new policy in 1999 to address operating and safety rules compliance in an educational manner.

The policy, System Teamwork and Responsibility Training (START), was instituted Jan. 1, 2000.

START provides for employees to receive positive learning experiences, training and growth opportunities in a cooperative environment.