The Role of Logistics in the Southeast Why does this matter?
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The Role of Logistics in the SoutheastWhy does this matter?
Jeff Heller, Norfolk SouthernFreight in the Southeast ConferenceMarch 15, 2012
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Key Drivers for Continued Intermodal Investment
• Rising demand for logistics savings from shippers and BCOs
• Shifting long-term supply chain patterns– Shorter haul service (250 – 1200 mi) or
(400-1930 km)– Higher quality service demands– International from both coasts
• Continued, but tempered, U.S. economic growth
• Increasing environmental awareness
• Increasing motor carrier costs and capacity constraints
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The Single Largest Challenge: Highway Capacity
2007 Peak Period Congestion
2040 Peak Period Projected
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Total US Intermodal Units Originated
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
Source: AAR
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NS 1-81 Corridor Traffic
Dallas
Memphis
SavannahMason ICTF
CharlestonNS Intermodal Terminal
North Charleston Marine Terminal
JacksonvilleNS Intermodal Terminal
Talleyrand Marine Terminal
Shreveport Gateway
New Orleans
Atlanta
CharlotteHuntsville
Birmingham
Front Royal
Harrisburg
NY/NJ
Greensboro
NorfolkNorfolk International Terminal
Portsmouth APMT Terminal
Newport News Marine Terminal
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NS Norfolk-Midwest and Southeast Corridors
Chicago
NorfolkNorfolk International Terminal
Portsmouth APMT Terminal
Newport News Marine TerminalMemphis
Dallas
DetroitCleveland
ColumbusKansas City Front Royal
HarrisburgNY/NJ
Cincinnati
Greensboro
Atlanta
Louisville
Birmingham
Huntsville
St. Louis
Decatur
New Orleans
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AtlantaAustell
Inman
Charlotte
Chicago47th Street
63rd Street
Landers
Calumet
Ashland Ave
Columbus
DetroitLivernois
Delray
SavannahMason ICTF
Port Wentworth
Miami
CincinnatiGest Street
Sharonville
Harrisburg/ Rutherford
Front Royal
NorfolkNorfolk Int’l Terminal
Portsmouth Marine Terminal
Newport News Marine Terminal
APM Terminal
New Orleans
Dallas
Huntsville
Jacksonville
Charleston/ Marine Terminal
Georgetown
Kansas CitySt Louis
LouisvilleBuechel
Appliance Park
Baltimore
Greensboro
Toledo
Decatur
TaylorCleveland
Pittsburgh
AyerAlbany
Buffalo
Titusville
NY/NJCroxton Erail
Elizabeth Marine Terminal
NYCT PNCT
Bethlehem
Morrisville/Navy Yard
Shreveport
Ft Lauderdale
Meridian
NS Intermodal NetworkIntermodal Network
Haulage Extensions
Intermodal Terminals
On-Dock Access
Interchange Gateways
Hub / Load Centers
Memphis
Birmingham
Norfolk Southern’sCorridor Network
Completion DatesPremier 1995Titusville 2009MSLLC 2011Heartland 2011PanAm Southern 2012Crescent Ph I 2012
HeartlandCorridor
Titusville
Meridian Speedway
Crescent Corridor
PanAm SouthernCorridor
Premier Corridor
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Panama Canal - 2014
• In preparation for the Panama Canal widening, NS will have completed:– New Columbus Terminal– The Heartland Corridor– The Meridian Speedway– The Pan-Am Southern Corridor– New Birmingham Terminal– New Memphis Terminal
• Our capacity initiatives will be c will continue with a focus on enhancing network efficiency and eliminating cost
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“Take Aways…”
• Highway and Truck Capacity will become increasingly constrained in the future
• Intermodal movement of International container freight will increase through East Coast Ports
• Public and Private investment in rail infrastructure will be required to accommodate the growth and keep freight moving throughout the Southeast
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Thank You