The Operating Plan:
Concentrating on Customer Needs

At its core, the NS operating plan focuses on specific customer needs.

The objective might be achieving reliable, scheduled service for time-sensitive traffic. It might be reducing cycle times or providing specialized equipment. Often, it's a combination of customer requirements.

Whatever the need, NS has the network reach and people to tailor services with the individual customer in mind.

Case in point: PPL, Inc., is a major coal receiver on the Northern Region. It depends on efficient cycle times for its train sets operating between mines and three utility plants.

When short-term service difficulties experienced by NS after June 1 led to unacceptable increases in PPL cycle times, NS went to work on the solution. "The commitment was there to take care of it for the customer," said Ron Listwak, NS assistant vice president Coal Marketing.

NS Marketing and Transportation people participated in a series of meetings with PPL. "Mutual awareness of each other's operational methods led to a common search for solutions," Listwak said. "We gave it the attention and resources needed to resolve the issues."

The result? Cycle times improved dramatically by early October. In some cases, cycle times were even better than they had been prior to June 1. NS was able to meet all goals, replenishing PPL coal stockpiles and even building reserves as part of PPL's normal winter inventory requirements.

What's more, NS sustained service at high levels. "We really put everything back on track pretty quickly," Listwak said.

The response to PPL illustrates NS' commitment to customer service. And when challenged, the entire NS team pulls together, as it did when the number of cars on line reached unanticipated levels after June 1.

Bayview Yard at Baltimore is part of NS' new Northern Region.

NS expected to begin its operations in the Northeast on June 1 with approximately 216,000 cars on line, an increase of some 67,000 cars.

On June 3, however, the car count on NS was 227,000, and by the end of June, cars on line hit a high of 248,000 as traffic volumes grew more than anticipated.

In response, the NS team mobilized, launching several initiatives to reduce cars on line and improve service and operations.

NS dispatched employees across its rail system to address specific service needs. Manual efforts supplemented automated car data processes that initially were inadequate.

NS accelerated installation of its Thoroughbred Yard Enterprise System (TYES) to provide more timely, accurate information on deliveries to customers. NS completed TYES installation 12 weeks earlier than the original 30-week schedule, enhancing its ability to manage traffic flows over the network.

NS hired additional people to train for engineer and conductor positions and offered incentives to agreement employees to increase employee availability.

NS leased more than 500 additional locomotives, bringing the available fleet to approximately 4,000 units.

NS called on assistance from Class I connecting carriers, Amtrak, regional railroads and short lines. Some classified cars for NS; others made their tracks available as links between segments of the NS system.

NS reconstructed a 10-track facility in Buffalo at a cost of $13 million to improve service for western New York. The project involved reinstalling five tracks for local service and five 8,000-foot tracks to support NS operations and facilitate interchanges with other carriers in Buffalo.

NS created teams of employees from various departments to analyze service issues at Harrisburg, Pa.; Sandusky and Bellevue, Ohio; Decatur, Ill.; and Detroit. The teams reviewed capacity and performance and recommended changes.

By the end of the year, NS reported greater operating fluidity across its expanded network and had positioned itself to handle growing service opportunities.