Impact of Norfolk Southern’s Intermodal Hub
Jeff Heller, Vice President Intermodal & Automotive
Global Competitiveness Summit
March 12, 2014
What Is Intermodal?
“Malcom McLean understood that
transport companies’ true business was
not operating ships or trucks,
but moving freight.”
– Marc Levinson, The Box
\’in·tər·’mō·dəl\ adj [1963] also: multimodal
Involving two or more modes of freight
transportation, such as ship, rail, and truck,
with rail being the primary mode.
Supply Chain Modes
1. Material Sourcing
Boxcar
2. Manufacturing Plant
Intermodal
Container
3. Manufacturing Warehouse
4. Retail Distribution Center
Truckload
5. Retail Point of Purchase
Intermodal
Container
Charlotte’s Top Intermodal Shippers
Who We Are
Norfolk Southern Corporation
• Fourth largest Class I railroad in North America
• Operates 29,000 track miles in 22 states
• $11.2 Billion Revenue in 2013 (2012 Fortune #247)
• 24 consecutive years as safest railroad in North America
Norfolk Southern Intermodal
• Largest intermodal franchise in the Eastern United States
• Provides service to 53 intermodal terminals/ports
• 53’ private EMP container fleet offers additional capacity
Intermodal: Markets Served
Buffalo
Albany
Boston
Detroit
Chicago
Central Illinois
Kansas City
St Louis
Scranton
Cleveland
Bethlehem
New York / New Jersey
Harrisburg
Toledo Pittsburgh
Philadelphia
Greencastle
Baltimore
Columbus
Cincinnati
Inland Virginia
Louisville
Georgetown
Norfolk
Greensboro
Huntsville
SCIP
Charlotte
Intermodal Network
Memphis
Atlanta
Birmingham
Dallas
Shreveport
New Orleans
Charleston
Savannah
Jacksonville
Haulage Extensions
Intermodal Terminals
On-Dock Access
Interchange Gateways
Central Florida
Miami
2013 NS Book of Business
Total Freight Volumes
6%
Intermodal Segments
4%
9%
6%
32%
24%
8%
Intermodal
49%
9%
18%
Coal
Agriculture
Automotive
35%
International
IMC
Metals and Construction
Chemicals
Forest Products
Truckload
Premium
2013 Intermodal Channel Partners
• Norfolk Southern wholesales its intermodal service to
channel partners, who provide door-to-door freight service
by combining the advantages of multiple transit modes.
32% International
35% Truckload
24% Intermodal Marketing Companies
9% Premium
Partnering for Door-to-Door Service
• Norfolk Southern wholesales its intermodal service to
partners, who provide freight service from any origin to any
destination by combining the advantages of multiple modes
of transportation – ships, trains, and trucks.
Door to Ramp
Ramp to Ramp
Ramp to Door
Maxton, NC 28364 to
Charlotte Market: Charlotte Intermodal Terminal
Dallas, TX 75228 to
Charlotte, NC 28208
To Dallas Market: KCS Dallas Intermodal Terminal
Paris, TX 75460
(114 miles)
(1,061 miles)
(108 miles)
Transportation Market Forces
Overburdened by
market conditions,
pure over-the-road
freight networks
are unable to
meet customer
demands.
Contracted
Truck Supply
Increasing
Government
Regulations
Proactive
Customer
Contact
Adding
Engines &
Equipment
Increasing
Freight
Volumes
Intermodal
Transportation
Driver
Shortages
Training New
Employees
Aging Tractor
Fleets
Evolving
Customer
Needs
Rising Fuel
Prices
Expanding
Route
Capacity
Intermodal rail
services increase
Adding
supply to the
Network
Nodes
freight network,
delivering greater
flexibility and stability
to cargo owners.
Charlotte: Intermodal Markets Served
Calgary
Edmonton
Vancouver
Seattle
Portland
NS has handled traffic to/from these locations with the past 12 months. Actual services
subject to change as market conditions warrant.
NS Origins & Destinations, 2013
Spokane
Toronto
Montreal
Minneapolis
Harrisburg
Reno
Oakland
NY/NJ
Chicago
Lathrop
Denver
Fresno
San Bernardino
Albuquerque
Memphis
Los Angeles
Atlanta
Charlotte
Phoenix
Charleston
Dallas
Savannah
Tucson
Norfolk Southern
Canadian Pacific
BNSF
Union Pacific
Kansas City Southern
Florida East Coast
Monterrey
San Louis Potosi
Mexico City
Jacksonville
Laredo
New Orleans
Central Florida
Miami
Services are subject to change as market conditions warrant,
and are dependent on Norfolk Southern and/or other railroads,
and.
NS Intermodal in Charlotte
New Terminal
Old Terminal
Airport Terminal
Opened 12/09/13
Uptown Terminal
Closed
Acreage
~170 acres
Expansion options
~40 acres
Pad Tracks
3, totaling 13,225’ 3, totaling 5,300’
Expandable to 6
Support Tracks
8, totaling 24,810’
N/A
Parking Spots
1,328 on site
600
¼ mile from I-85
4 miles from I-85
Highway Access
Charlotte, NC
Miami
Charlotte Intermodal Facility
W
E
Charlotte Terminal Schematic
North >
< South
Runway
Pad Tracks
Crane Lifts and Container Positioning
Terminal
Operations
Area
Pickup Parking
Truck Outbound
AGS OUT
AGS IN
Dropoff Parking
Rail Outbound
Gate
Office
Intermodal
Expansion
Area
Future Runway
Runway
CDIA
Charlotte Intermodal Facility
W
E
So, What’s In It For Charlotte?
Global - U.S. Shipping Options
Traditional West Coast centric routings have expanded
to include other options favoring East Coast ports.
Improvements to Charlotte Service
Domestic
• Improved train service for transcontinental product
• Expanded Mexico services
• Increased terminal capacity for 53’ equipment supply
• Increased capacity for Crescent OTR conversions
International
• Focus on improved service from east coast ports
• All-water canal focus
Benefits for Greater Charlotte
Smart
Urban Planning
Logistics Savings
Less Congestion
& Maintenance
Emissions
Reductions
Job Creation
& Investment
Thank You