Norfolk Southern CMO Ed Elkins testifies on growth in freight rail

Norfolk Southern Executive Vice President and Chief Marketing Officer, Ed Elkins, recently addressed the Surface Transportation Board (STB) to outline Norfolk Southern’s strategy for growth in the freight rail industry. The hearing, which included industry leaders from other Class 1 railroads, focused on the challenges and opportunities in the sector, as well as how Norfolk Southern is positioning itself for long-term success.

Elkins began by reaffirming Norfolk Southern’s unwavering commitment to its strategy despite recent leadership changes. "The Norfolk Southern strategy is a company strategy, inspired by our railroaders and developed by our entire leadership team," said Elkins, emphasizing that the pillars of service, productivity, and growth remain steadfast, with safety as the foundation.

Key points from Ed’s testimony include:

  1. The Norfolk Southern Strategy: Norfolk Southern's primary focus is delivering reliable service that customers can count on every day, enhancing both efficiency and trust. By doing so, the railroad has begun converting freight back from highways to rail and aggressively targeting new business.
  2. Network Advantages: Norfolk Southern’s expansive network connects major US population centers with global supply chains. This unique positioning, alongside partnerships with more short lines than any other railroad, enables the company to drive growth across diverse markets.
  3. Productivity and Resilience: Elkins highlighted how improved service reliability and network efficiency have unlocked additional capacity for growth. Norfolk Southern led the industry in volume growth during Q2 2024, with intermodal volumes increasing by 8%, marking a post-pandemic high.
  4. Investment for Future Growth: Norfolk Southern has made significant investments in infrastructure, including the purchase of the Cincinnati Southern Railway and upgrades along the 3B line in Alabama. These projects are designed to support long-term growth and sustainability.
  5. Innovation and Technology: Elkins underscored the importance of leveraging new technologies to enhance service and customer experience. Notable initiatives include investments in digital train inspections, autonomous track inspection, and RailPulse, a GPS and telematics platform that gives customers greater shipment visibility.
  6. First and Final Mile Focus: Elkins noted Norfolk Southern’s Business Development and First and Final Mile Markets Division as a unique approach to improving local-level service and expanding business opportunities beyond NS railheads. This initiative has driven a 5.2% increase in short-line interchange volumes since March 2024.

STB Board Chairman Robert E. Primus shared thoughts on growth-oriented railroads during the panel’s question and answer session:

“I want to thank both railroads, because I think when it comes to making the hard decision to shift away from where we were going… it takes courage to do so.” Primus continued later, “I don’t think anybody in the industry is looking for perfection, at all. I think what most people, and what we’re looking for, is consistency, is resiliency, and an ability to be transparent – not only with us but with the customer and your partners.”

STB members also commended the railroads response to the Francis Scott Key Bridge collapse earlier this year. Elkins said the win stands on the shoulders of our railroaders, “As we become more productive, our system becomes more fluid, and we build up resiliency for when things go wrong, so that, ultimately, we can deliver exceptional results in the face of uncontrollable circumstances.

Elkins closed his testimony by reaffirming Norfolk Southern’s commitment to delivering service customers can trust while building supply chains of the future through smart growth, innovation, and continued investments.