Norfolk Southern and short line partners driven by shared entrepreneurial spirit to grow

Norfolk Southern hosted our annual Short Line Conference on May 14, bringing together nearly 200 representatives from our extensive network of more than 270 short line partners. Ed Elkins, EVP and Chief Marketing Officer, opened the conference by emphasizing the interconnectedness of Class 1’s and short line railroads. Elkins also highlighted the emergence from our annual shareholder meeting with renewed vigor and a clear direction to forge A Better Way to do business with rail.

We are proud that our strategy and direction remain focused on continuous improvement and maximizing freight potential. To our short lines: we can’t accomplish our goals without you. Over 40 percent of our industrial freight moves through short lines. Your partnership is critical to our ability to deliver reliable service, produce continuous product improvement, and generate smart and sustainable carload growth. I look forward to all that we can accomplish together by taking urgent action to secure new opportunities,” said Elkins.

John Orr, Executive Vice President and Chief Operating Officer, followed with insights into operational priorities. "Our goal is to optimize our network and ensure we deliver consistent, reliable service to all our customers. The short lines play a crucial role in this mission by providing critical first and final mile connections," Orr stated. He acknowledged the challenges facing the industry and expressed confidence in Norfolk Southern's ability to meet future demand.

"We are listening and learning. As a veteran railroader, I understand the importance of aligning efforts with our commercial commitments. We are committed to operational excellence and safety in every decision we make,” shared Orr.

Stefan Loeb, Vice President of Business Development and First and Final Mile Markets, delivered an engaging session using examples of the actions Norfolk Southern is taking with its short line partners to win in the marketplace. Loeb and the Business Development and First and Final Mile Markets team have been working for a year to maximize efficient solutions, setting the stage for 2024 and beyond. The newly-restructured division now includes Short Line and Field Sales, Trucking and Rail Integrated Solutions, Crown Companies, Short Line Performance, Industrial Development, Real Estate, and Market Research and Forecasts – a strategic combination of all Norfolk Southern’s first and final mile offerings.

"The real excitement came from the hundreds of breakouts and meetings where we collaborated on future growth and success," reflected Loeb.

Breakout and session topics ranged from Norfolk Southern’s Short Line Performance Project, which since February has yielded a 9 percent year-over-year increase in interchange volume, to the benefits of RailPulse, a telematics program created to revolutionize the way customers visualize shipments and track their goods. Several Norfolk Southern team members also presented case studies of recent transactions and updates on commodity trends and opportunities.

David Lehlbach, Norfolk Southern AVP of Strategic Planning, led a key session on public-private partnerships, outlining the opportunity short lines have to access key grant funding to entice increased rail traffic. He highlighted that out of $1.4 billion in fiscal year 2022 Consolidated Rail Infrastructure and Safety Improvements (CRISI) Program funds, $720 million was awarded to short line railroads, emphasizing significant opportunities available to partner on submissions for federal and state programs.

"Public funding is a powerful tool to enhance safety, reduce supply chain bottlenecks, and support infrastructure projects that benefit both Norfolk Southern and its short line partners," Lehlbach noted.

The conference concluded with a forward-looking discussion on the evolving landscape of the rail industry and the critical role short lines will play in the transformation.