Norfolk Southern RailwayS.C.O.R.T. Annual Conference

Darrell Wilson – Assistant Vice PresidentNorfolk Southern Government Relations

September 12, 2011

Norfolk Southern: 185 Years

• Lineage includes 411 predecessor railroads• Over 30,000 employees; Hiring 4,000 for 2011 • 4,000 locomotives and 90,000 freight cars• $ 9.5 Billion in revenue: coal, intermodal, general merchandise• Active participant in numerous public-private projects

MEMPHIMEMPHIS S

BIRMINGBIRMINGHAMHAM

ATLANTATLANTAA

CHARLOCHARLOTTETTE

KNOXVILKNOXVILLELE

ROANOKROANOKEE

GREENCGREENCASTLEASTLE

HARRISBHARRISBURGURG

PHILADEPHILADELPHIALPHIA

E-RAILE-RAIL

CHICAGCHICAGOO

NEW NEW ORLEANORLEANSS

Public Benefits of Crescent Corridor

• Benefiting Jobs: 47,000 by 2020; 73,000 by 2030• Benefiting the Environment: $2 billion in fuel savings by 2020• Benefiting Highway Maintenance Systems: $1.2 billion by 2020• Benefiting Drivers: $2.0 billion in accident avoidance• Benefiting the Economy: $16.7 billion by 2020; $39.8 billion by 2030

392,000 Annual Trucks Diverted 6.2 Million Gallons of Fuel Saved 69,000 Reduced Tons of CO2 $ 4.2 Million Pavement Savings$ 21 Million Congestion Savings$ 5.3 Million Safety Savings$ 81 Million Shipping & Logistics Savings

163,000 Fewer Trucks

110,000 Fewer Trucks

266,000 Fewer Trucks

Intermodal Terminal Expansion Update

Facility Location Groundbreaking Date Completion Date

Annual Volume Capacity (Lifts)

Mechanicville, NY July 2010 Spring 2012 70,000

Greencastle, PA October 2010 Fall 2012 85,000

Memphis, TN April 2011 Fall 2012 200,000

Birmingham, AL June 2011 Fall 2012 100,000

Harrisburg, PA Fall 2011 Spring 2012 65,000

Charlotte, NCCharlotte, NC Fall 2011Fall 2011 Summer 2013Summer 2013 200,000200,000

NS’ Current Charlotte Intermodal Presence

• North Charlotte IMF: 40 acres in the North Davidson area and Optimist Park neighborhoods of Charlotte (1 mile from downtown)

• NS currently moves international and domestic freight using low cost intermodal service between:– Charlotte Chicago and points west– Charlotte The Ports of Savannah and Charleston– Charlotte Memphis and points west– Charlotte Dallas and points west

• Intermodal business at the North Charlotte facility increased by 74% to 117,000 lifts since 1998

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Market Analysis: Population Migration

Population shift from 2000 to 2010, shown as percentage*Green indicates growth, Pink indicates loss

Origin

Destination

Charlotte Origin-Destination Pairs

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NS’ Current Charlotte Intermodal Presence

Current Intermodal Facility Constraints

• Space constraints have required the use of four inefficient “satellite” parking sites for over ten years

• This operation elevates truck movements in the downtown area of Charlotte

• Current and projected intermodal growth throughout the Southeast requires expanded intermodal operations in Charlotte

• Greater capacity would also lend itself to the addition of more intermodal service lanes

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Charlotte Regional Intermodal Facility• Two loading/unloading

tracks totaling 8,100 ft.• 19,000 ft. of support yard

track• 400 40-ft. paved trailer

parking spaces• 900 53-ft. paved trailer

parking spaces• 28,700 ft. of lead track

along the mainline• An Automated Gate

System, ancillary buildings & operating equipment

I-485 RampsI-485 RampsIntermodal FacilityIntermodal Facility

West Boulevard RelocationWest Boulevard Relocation

•More than $6.5 billion in monetized public benefits over the next twenty years, according to Cambridge Systematics

•Benefit-Cost Ratio of 16.2:1 at a 3% discount rate over twenty years, or more than $16 in public benefits for every $1 of investment

•Cumulative 20-Year Benefits to North Carolina ONLY from the CRIMF (without discounting):

8.4 million hours of travel saved473 million vehicle-miles traveled reduced470 accidents avoided 688,000 tons of carbon dioxide eliminated 62 million gallons of fuel saved

Charlotte Regional Intermodal Facility Public Benefits

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Charlotte Regional Intermodal Facility Economic Impact

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Charlotte Regional Intermodal Facility Economic Impact

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Charlotte Regional Intermodal Facility Cumulative 20-Year Economic Impact

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CRESCENT CORRIDOR INTERMODAL FACILITIES2012 AND BEYOND - FUNDING REQUIREMENTS

Open 2012•Birmingham, AL; Memphis, TN; Greencastle, PA; and Harrisburg, PA

Open 2013•Charlotte, NC

Open 2012

Open 2013

Open 2014 and Beyond

• Atlanta, Knoxville, E-Rail, Roanoke, Philadelphia, and Bethlehem

Open 2014 and Beyond

For More Information – www.TheFutureNeedsUs.com