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NORFOLK SOUTHERN | 2014 Investor and Financial Analyst Conference 1NORFOLK SOUTHERN |2014 Investor and Financial Analyst Conference

MONDAY, SEPTEMBER 22

6:00 p.m. Reception – Courtyard (1st floor)

7:00 p.m. Dinner – Rockefeller Room (2nd floor)

Wick Moorman, Chairman & CEO

Welcoming Remarks

TUESDAY, SEPTEMBER 23

6:45 – 7:45 a.m. Breakfast Buffet, Rockefeller Room (2nd floor)

7:45 a.m. Management Presentations, Grand Ballroom (1st floor)

Jim Squires, President

Introductory Remarks and Overview of Morning Presentations

11:00 a.m. Bus Departures to Rockport Yard for Train Trip

11:30 a.m. Train Trip to Bellevue Yard

12:45 p.m. Arrival at Bellevue Yard

Lunch and Afternoon Presentations, Building E5, Conference Room

Tour of Bellevue Yard

3:15 p.m. Bus Departures to Airport/Hotel

AGENDA

NS Routes

NS Trackage or Haulage

BELLEVUE

NORFOLK SOUTHERN | 2014 Investor and Financial Analyst Conference 32 NORFOLK SOUTHERN | 2014 Investor and Financial Analyst Conference

Safety is our top priority atNorfolk Southern. A safety briefing will be provided at the start of the trip to familiarize you with the emergency procedures and precautions on the train.

GETTING ON AND OFF THE TRAIN

Please board and detrain only at the designated doors, the

locations of which will be announced in advance. A staff

member will be at the bottom of the steps to assist you.

WHILE ON BOARD

Be prepared for unexpected stops and starts. When standing,

keep a firm handhold. When walking between cars, always use

caution as the cars may shift due to the train’s motion. Please

be careful with hot drinks, as they could spill, and be aware of

pinch points at foot level between the cars.

Our train is powered by three F-series locomotives. These round-nosed locomotives from an

earlier era have generated widespread interest among employees, rail fans, and photographers.

The F-locomotives were built in the early 1950s by the Electro-Motive Division of General Motors.

They are numbered in the same 4200 series as the F-units once operated by Norfolk Southern

predecessor Southern Railway. The livery features a modern interpretation of the “tuxedo” paint

scheme reminiscent of the first F-unit built in 1939 for Southern Railway.

Today’s F-units were purchased from Kansas City Southern in 2005 and upgraded with new

braking systems, modern safety equipment, increased horsepower, and ditch lights at Juniata

Locomotive Shop in Altoona, Pa. Hundreds of employees had a hand in making the units efficient,

powerful, smooth-running locomotives that should provide good service for years to come.

TRAIN CONSIST (FOR DESCRIPTIONS AND PHOTOS OF THE RAIL CARS, SEE PAGE 22.)

PennsylvaniaNS #7

Office CarF Unit Locomotive F Unit Locomotive F Unit Locomotive

CarolinaNS #2

Office Car

Buena VistaNS #23

Theater Car

OhioNS #20

Office Car

West VirginiaNS #21

Office Car

IndianaNS #12

Sleeper Car

NS #39

Power Car

GeorgiaNS #13

Sleeper Car

MichiganNS #4

Office Car

New YorkNS #26

Rolling Classroom

KentuckyNS #19

Dining-Lounge Car Dome Car

DelawareNS #24

THE TRAIN

STEP

S

STEP

SST

EPS

STEP

S

STEP

S

STEP

S

SAFETY


Our Route TodayOn today’s trip we’ll travel along our Chicago Line, the highest density segment on the Norfolk

Southern network. Some 100 trains a day operate across this high-speed double-track route

carrying intermodal, metals, automobiles, grain, lumber, coal, chemicals — just about every

commodity that we transport. Departure point for the 53-mile trip is Rockport Yard in Cleveland.

We will travel west to Vermilion, Ohio, where the landscape begins to change from industrial

to rural as we change tracks to the Cleveland District towards Bellevue. At Bellevue, we’ll tour

what will soon be the largest and most modern classification yard on the NS system. Major

improvements under way here have widespread implications for NS’ operational efficiency and

customer service.

Located at the confluence of Norfolk Southern’s busiest mainline routes from New York and Pennsylvania

to Chicago, Cleveland relies on railroads to transport its coal, coke, steel, auto parts, chemicals, salt, stone

and finished products. The 345 employees at NS’ Rockport Yard handle an average of 30 trains daily

for customers such as ArcelorMittal Steel, which recently opened a second blast furnace in Cleveland —

significantly increasing production and rail shipments.

Mechanical employees at the yard perform car and locomotive repairs, and the car shop at Macedonia,

Ohio, gives new life to old rail cars by replacing bulkheads and doors, fixing upwards of 1,200 cars annually.

An NS intermodal terminal at Maple Heights handles consumer goods, including electronics, apparel, and

auto parts, handling a record 118,000 containers in 2013.

CLEVELAND, OHIO

An eastbound coal train leaves Cleveland at sunset.


A 1967 aerial view of Bellevue Yard shows the newly constructed classification yard on the left, with space reserved for future growth on the right.

Three of the Nickel Plate Railroad’s Berkshire steam locomotives moved freight and passengers through Bellevue at speeds up to 70 mph during the 1940s and 1950s.

Bellevue was founded in 1815

and has been a railroading

center since 1882, when the

New York, Chicago & St. Louis

Railroad built its main line

through town. This is the railroad

that quickly became known as

“The Nickel Plate Road,” as the

quality of its construction was

high, and the entire enterprise

initially had been funded with

cash rather than financed

through banks and brokers.

Incredibly, the new line was 600

miles long (including sidings)

and had been built in 600 days.

Bellevue was selected as a

center for the Nickel Plate’s

car switching, locomotive

maintenance (in both the

steam and diesel eras),

track maintenance, and

transportation offices.

BELLEVUE, OHIO

“The star of our destiny seems

brightly in the ascendant,”

reported the Bellevue Local

News. “Fortune seems to

be pouring her favors onto

the lap of Bellevue with a

generous hand.”

Nickel Plate joined the Norfolk

& Western Railway system

(a Norfolk Southern predecessor)

in 1964, as the modern era of

railroad mergers was getting

under way.

Bellevue is… a key to superior servicefor shippers throughout the nation.

In 1966, NW completed its $13.5

million electronic classification

yard at Bellevue, designed to

anchor the northern part of its

newly expanded system from

astride the carrier’s Buffalo-

to-Chicago mainline. Looking

decades ahead, NS offered a

portent of the yard’s growing

significance when it reported,

“All realize that Bellevue is…

a key to superior service for

shippers throughout the nation.”

At that time, NS set aside enough property to double the size of the

hump yard if business demanded it. More than 45 years later, that

time arrived. In 2012, in response to steady increases in fracking,

steelmaking, automotive production, and other merchandise freight

shipments, NS began construction of an additional 38 classification

tracks as part of a $160 million multi-year expansion

and modernization project.

Today, 100 trains, carrying

vehicles and parts, agricultural

products, and consumer goods,

originate, terminate, and transit

through Bellevue on a typical

day. “The biggest challenge

during the construction has been

to maintain operations,

but the employees here are

second to none, and they were

up to challenge,” said Bellevue

Terminal Superintendent

Will Washington.

The yard is base for some

700 NS employees in the

transportation, mechanical

and engineering departments.

Bellevue Locomotive Shop can

house 14 locomotives under

roof and services and repairs

an average 320 units each

month. Bellevue Car Shop helps

keep NS’ rail car fleet running,

repairing an average 150 cars a

month and handling preventive

maintenance on boxcars for the

auto industry.


BELLEVUE

BUILDING FOR GROWTHCovering 620 acres and stretching more than 5.5 miles long, Norfolk Southern’s Bellevue Yard will be the largest and most modern classification facility on the NS system and one of the biggest in the United States. The $160 million project to increase capacity at the terminal included construction of 38 new tracks, at left. The expansion, which nearly doubles Bellevue’s yard capability, also is expected to increase operating efficiency across the entire NS network.


THE BELLEVUE EXPANSION WILL HELP IMPROVE OPERATING EFFICIENCY, SERVICE RELIABILITY, ASSET UTILIZATION, AND STRENGTHEN NORFOLK SOUTHERN’S ENTIRE 22-STATE RAIL NETWORK.

DETROIT

NEW YORK METRO AREA

PHILADELPHIA

ATLANTA

NORFOLK

BIRMINGHAM

MEMPHIS

ST. LOUISKANSASCITY

CHICAGO

RIGHT ASSET, RIGHT PLACE, RIGHT TIME

Norfolk Southern is making infrastructure investments to ensure

that we have the right asset, in the right place, at the right time to

respond to today’s business opportunities while also preparing for

tomorrow’s growth.

With our investment in new capacity at Bellevue, we can build

trains for direct delivery to western gateways and distant points

on our system without making stops at additional rail yards for

switching. Reduced car handlings are expected to cut transit times

and drive operating efficiencies across the entire NS network.

Bellevue is geographically and operationally located at the right spot to leverage our existing infrastructure to position

us for business growth.”

Jim SquiresNS President

“

BELLEVUE


OPERATING EFFICIENCY

» Pre-blocking cars at Bellevue for longer hauls and direct interchanges with western carriers will reduce switching at other terminals.

CUSTOMER SERVICE

» Customers should see improvements of 1 to 2.3 days in transit times.

ASSET UTILIZATION

» Fewer locomotives will be needed for switching operations.

» Fewer car handlings, car miles and car days

» Increased yard capacity at Bellevue creates additional space at other terminals.

ANTICIPATED BENEFITS

A conductor uses a remote control unit to operate a locomotive that pushes rail cars to the top of the hump in the classification yard.

3,600 CAR-PER-DAY CAPACITY At Bellevue Terminal, rail cars arrive in the receiving yard, below, are sorted by destination onto one of 80 tracks in the classification yard, center, and assembled into outbound trains on the forwarding tracks, left and right.


» $160 million NS

investment in freight

rail capacity

» 3,600-car per day

classification capacity

(previously 1,800)

» 39 miles of new

track including:

38 classification tracks,

5-mile main line

track around yard,

3 forwarding tracks,

2 receiving tracks,

1 pullback track,

1 hump lead track

INVESTING FOR GROWTH

» 140 computer-

controlled switches

route cars to

classification tracks

by destination

» 11 upgraded control

points enable train

speeds to increase to

25 mph from 10 mph

» 145 miles of new

underground

communication

and signal cable

» 3 new buildings:

a 4-story control

tower, mechanical

and maintenance-of-

way facilities

» 11 100-foot tall high-

mast aluminum light

towers illuminate yard

» 22 diesel-powered

generators provide

back-up power

to ensure reliable

operations

A diamond-shaped crossover at the hump allows rail cars to access any of the 80 classification tracks in the yard.

NS invested in improvements to its Bellevue Mechanical facilities, adding tracks that allow inspections, servicing, fueling, and repairs to be accomplished trackside, which will reduce dwell time. A new vehicle access bridge, above, allows easy access to the car shop.

PROJECT HIGHLIGHTS, BY THE NUMBERS


Locomotives push rail cars up a slight incline called a hump, where a conductor (left) pulls a pin to separate single cars, or blocks of cars, according to the data on an electronic display.

A computer-controlled system calculates the speed of each car, based on car weight, and varying weather conditions such as precipitation, temperature, and wind. To control speed, retarders (bottom left) similar to automotive disc brakes, slow each car down.

The computer routes carsto specific tracks based on destination, where the cars are assembled into blocks for outbound trains.

BELLEVUE YARD

»

»

»

»

CLASSIFICATION YARD

TO KEEP NS ROLLING

Bellevue Locomotive Shop, at right, supports the 24/7 operations at the yard, servicing, repairing, and maintaining some 320 locomotives a month. On average, the shop uses 1.7 million gallons of fuel, 164 tons of sand and 12,630 gallons of lube oil every month to keep NS’ locomotive fleet rolling.


TO PITTSBURGH

WHEELING & LAKE ERIE RAILROAD

TO FORT WAYNE, IND.TO CHICAGOTO COLUMBUS, OHIO

TO TOLEDO, OHIOTO CHICAGO

TO SANDUSKY, OHIOTO CLEVELANDTO BELLEVUE YARD

An aerial view of the interchange west of Bellevue Yard.

CONNECTIONS IN ALL DIRECTIONS


1967 2014

BUILT FOR GROWTH IN THE RIGHT LOCATION


Like treasured family heirlooms handed down through

generations, Norfolk Southern’s business cars endure, symbolic

of the powerful legacies of predecessor companies that helped

create the rich history and future promise of the American

railroad industry. The following is the history of the 11 passenger

cars that make up our train today, arranged in order from front

(Pennsylvania) to rear (Buena Vista).

NS 7 – PENNSYLVANIA

The Pennsylvania is the oldest car in Norfolk Southern’s fleet.

It was the first all-steel business car built for Norfolk & Western

Railway. After the formation of Norfolk Southern in 1982, the

car was renumbered NS 7 and named Pocahontas. It kept

that name and number until 1988 when Conrail CEO Richard

Sanborn acquired the car and renamed it Boston in honor of his

Massachusetts hometown. In 1999, the car became part of the

NS fleet and renamed Pennsylvania. The car can sleep six, as the

bedrooms each have two beds, including one that folds up into

the ceiling when not in use.

NS 20 – OHIO

The office car Ohio was built in 1920 as a 12-section, one-

drawing-room sleeper. In 1943, Pullman rebuilt it into a

13-section tourist sleeper. Southern Railway bought the car in

1947 and converted it to a dinette-coach the following year. An

article in the Southern Railway Historical Association magazine

Ties reported that the car made a profit of $47 in its first 10 days

of service. Revenue of $431 in food and bar service exceeded

costs of labor, food, spirits, and supplies totaling $384.

CAR DESCRIPTIONS AND PHOTOS

NS 12 – INDIANA

Pullman built NS 12 as a dining car in 1949 for an Norfolk &

Western passenger train called the Powhatan Arrow, a postwar

streamliner. A contest to name the train resulted in 100,000

entries. A retired NW employee submitted the winner and

collected a $500 first prize. His entry honored Native American

Chief Powhatan, a member of the tribe of the same name.

Originally a 33-seat diner, it was converted at Roanoke Car

Shops to an NW staff car. Today, it is an eight-bedroom sleeper,

refurbished in 1989. The names of employees involved in the

restoration are inscribed on a brass plate

inside the car.

NS 13 – GEORGIA

The Georgia began its life as Southern Railway office car No.

18. In 1968, Southern Railway’s Hayne Shop converted the car

to an eight-bedroom, four-bathroom sleeper with eight upper

berths. In 2006, the car was renumbered NS 13 and redesigned

and renovated to have four bedrooms with private baths and an

adjacent exercise room.

NS 4 – MICHIGAN

Pullman built NS 4 as a 12-section, one-drawing-room sleeper

in 1927. Southern Railway acquired the car in 1948 and later

converted it into an office car. Norfolk Southern acquired it in

1999 and officially designated it NS 4 in 2000. As with some

of the other cars, cedar closets and cherry wood bureaus are

among the bedroom appointments of NS 4. The dining room

has two beds that fold into the wall and a typewriter shelf that

folds into the counter – an ingenious space saver. Michigan was

refurbished in 2012 to a four-bedroom executive sleeper with

private bathrooms and a crew room with a bunk.


NS 2 – CAROLINA

The Carolina was built as a four-bedroom sleeper by the Pullman

Company for Southern Railway in 1928. Over the years, many

of the car’s fixtures have been carefully preserved. The Carolina

was refurbished in early 2013 to a four-bedroom executive

sleeper with private bathrooms and a crew room.

NS 21 – WEST VIRGINIA

Built by Pullman between 1926 and 1929, this former heavy-

weight car, built almost entirely from steel, was converted

into an office car in 1950 at Southern Railway’s Hayne Shop

in Spartanburg, S.C. In 2006-2007, the West Virginia was

converted to a lounge car.

NS 19 – KENTUCKY

Pullman built the Kentucky in October 1949 as the 36-seat diner

Norfolk & Western 494 for service in the Powhatan Arrow, an

NW passenger train. In April 2008, the Kentucky was converted

to a dedicated dining car seating 48.

NS 24 – DELAWARE

NS 24 was built in 1954 as a stainless steel dome lounge for

the Santa Fe Railway passenger train, the San Francisco Chief.

Conrail acquired the car after it served on the Northeast-to-

Florida “Auto-Train.” As part of a complete renovation and

systems upgrade in 2004, the last vestiges of its southwestern

motif were removed.

NS 26 – NEW YORK

The Budd Company built this coach in early 1947 among a

group of cars ordered for service on the New York Central. The

car was used in NYC passenger trains such as the Pacemaker,

Ohio State Limited, and New England States. The car was later

owned by Penn Central, Amtrak, and Conrail. It became part of

Norfolk Southern’s fleet in 1999. A 2012 renovation added new

exterior windows and an audio-visual system that includes a 50-

inch main screen and two 32-inch side wall screens. This rolling

classroom seats 54 for presentations and allows passengers to

enjoy views of the countryside.

NS 23 – BUENA VISTA

The Buena Vista affords a close-up look at the track from a

large window at the observation end of this unique car. Most

often used for official inspection trips, it features 28 theater-

style seats facing the rear window. The car was originally built

as a 16-section sleeper called Cuyama. In 1973, it was converted

to a roadway inspection car and named Buena Vista.

CAR DESCRIPTIONS AND PHOTOS

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