The Growth AheadThe Growth Ahead

ITAC Fall 2004San Antonio, TXBlair HannaMgr eCommerce

Rail Highway - Merchandise Volume

2003 - 2004

Overall Volume (000’s)AAR Carloads weeks 1-38

Forecasted Ton-mile Growth(in billions)

65%47%

Source - AASHTO

1,241 1,239

2,0461,821

0

500

1,000

1,500

2,000

2,500

Truck Rail

2000 2020

2,500

Normal US economic expansion based on population growth

Drivers of Change and Growth

Global economic expansion

Greater constraints for trucking industry

Increasing energy prices

Managing Growth atManaging Growth at

Norfolk SouthernNorfolk Southern

Crew Hiring Plan

1,597 1,600

156

330

0

400

800

1,200

1,600

Conductor Trainees Locomotive Engineers

2003 2004

Network Operating Plan

TOP Steering Committee

Up-to-date corporate Marketing

demand forecast

Add additional train serviceOperating Plan Developer

(OPD) computer model analyzes train blocks &

routes Opportunities to bypass

yards

Redesigned Thoroughbred Operating Plan (TOP)

Increasing Capacity

Reopened Sevier yard at Knoxville, TN on July 27

Completed $18 million expansion at Enola yard in

Harrisburg, PA

Expanded Intermodal terminal

capacity at: Harrisburg, PA

Port Elizabeth, NJ (E-rail)

Croxton, NJ

Detroit, MI

Additional main track siding capacity at Saulsbury, TN

and Sheffield and Brownsville, AL

Locomotives

90 new locomotives delivered through July 2004

117 new locomotives to be delivered in 4th quarterLease up to 80 locomotives for peak season

Ramped up locomotive overhaul program 2004 retirements reduced

Freight Cars

Enhanced car repair program resulting in 14% increase in scheduled car repairs over 2003

Renewed expiring equipment leases representing 2,429 cars

Additions to NS Fleet in 2004 250 60-ft, plate F boxcars (new builds)

75 pressure differential hoppers (new builds)

400 covered coil cars

2,000 double stack platforms and 1,000 conventional

300 bi-levels (new builds)

Established 20 independent car-prepping contractors at strategic locations

Communication

Posted and automated service alerts available at

www.nscorp.com

Industry meetings, both railroad sponsored or

shipper & shipper association sponsored

Direct customer contactCustomer Service Operations Center

Customer site visits

Shortline Interline Service AgreementsExecuted ISA’s: 80 (representing 40% of eligible Shortline ISA’s)

In Process ISA’s (Awaiting Final Sign-off): 75 (representing 38% of eligible Shortline ISA’s)

Needed ISA’s: 44 (representing 22% of eligible Shortline ISA’s)

Customer Service

eCommerce 2004 Changes

Norfolk Southern Secure Website

E-Applications Tailored To Fit Your Business Needs

- Bill of Lading - Car Orders - CTMS- Diversions - Freight Bills - Historical Tracking- Intermodal - Rate Inquiry - Report Wizard- Trains Inquiries - Transit Times - Trip Plans- Unit Trains - Umler - Waybills

ForecastDemand

Order &ConfirmEmpty

EmptyTransit

EmptyPlacement

Release,Waybill &Manifest

IssueFreightInvoice

OriginPull orPick-UpLoaded

Transit

ReactiveTrace &

ETA

ReactiveProblemResolve

LoadedPlacement

EmptyRelease

ResolveFreightClaims

AssessAdditionalCharges

CustomerPay

ShipmentLife Cycle

Session Starts by Customers

0

20000

40000

60000

80000

100000

120000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2003

2004

Customers Implemented

9551063

205798610241014

938939

14121242

1549

1Qtr -2002

2Qtr -2002

3Qtr -2002

4Qtr - 2002

1Qtr -2003

2Qtr -2003

3Qtr -2003

4Qtr - 2003

1Qtr - 2004

2Qtr - 2004

3Qtr - 2004

Implementedper Qtr

`

Event Notifications

Highlighting our most efficientApplications

Event Notification Reports

- All major transportation events available- You determine what events you want to monitor- Receive a report “Only” when an event occurs

Event Notification Reports

- Report is sent automatically when change occurs- You determine how you want notified

- fax, email, FTP- Also determine how long to run report

- Detailed report showing event information- Newest event reporting highlighted in yellow- ETA reports indicating change also available

Diversions and Reconsignment

Diversions with a new look!

Automated Diversion Process

- Divert a railcar- Reconsignments and Destination Turnovers- Private Empty Car Disposition

- Complete user friendly request screen- Look up features to ensure accuracy- Use previous Diversion to reduce impute- Same look for Diversion, Reconsignment and Empties

Create a Diversion

- Best feature is immediate gratification- Easy to read acknowledgment summary- Log of historical activities always available

Coming Soon to accessNS

Historical Transit Reports

- Report consists of a Shipper or Receiver Report- Transit times on and off NS (NS in route traffic)- Bad Order effect noted

Transit Report Summary

- Very detailed information- Current and Previous Month- Origin/Shipper - Destination/Receiver- NS Transit and Offline when available- Hyperlink to entire movement detail

Transit Report Detail

Echelp@nscorp.com or 1-800-235-5551