1 / 13

Rail Capacity & Economic Recovery

Rail Capacity & Economic Recovery. Scott D. McGregor Group Vice President Paper, Clay & Forest Products March 22 , 2011. Railway Volume 2010 Volume vs. 2009. Fourth quarter volume of 1,708,800 Increase of 141,600 units, or 9% Record Agriculture volume

glen
Download Presentation

Rail Capacity & Economic Recovery

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Rail Capacity & Economic Recovery Scott D. McGregor Group Vice President Paper, Clay & Forest Products March 22, 2011

  2. Railway Volume2010 Volume vs. 2009 Fourth quarter volume of 1,708,800 • Increase of 141,600 units, or 9% • Record Agriculture volume • 52-week high loadings for Agriculture, Coal & Intermodal 2010 volume of 6,764,100 • Increase of 806,800 units, or 14% • Record Agriculture volume Strong project growth Corridor initiatives Conversions from the highway Economic recovery

  3. Merchandise ComparisonsFourth Quarter 2010 vs. 2009 4Q 2010 Volume (000) & y-o-y Percent Change Total Merchandise revenue of $1.2 billion, up $117 million, or 10% Total Merchandise volume of 558,500 carloads up 16,600, or 3% • MetCon volume growth driven by new business & 11% increase in domestic steel production • Record Agriculture volume led by fertilizer and corn • Chemicals growth led by gains in petroleum, plastics and industrial intermediates • Paper volume led by newsprint, pulpboard & lumber • Automotive comparisons impacted by network redesign and quality holds

  4. Coal ComparisonsFourth Quarter 2010 vs. 2009 4Q 2010 Volume (000) & y-o-y Percent Change Total Coal revenue of $685 million, up $105 million, or 18% Total Coal volume of 395,300 carloads, up 40,800 or 12% • Utility volume increased due to stockpile re-building • Metallurgical volume was up due to new business & increased steel production • Export volume was impacted by strong 4Q 2009 comparisons

  5. Intermodal ComparisonsFourth Quarter 2010 vs. 2009 4Q 2010 Volume (000) & y-o-y Percent Change Total Intermodal revenue of $471 million, up $64 million or 16% Total Intermodal volume of 755,000 units up 84,200 or 13% • Domestic volume up 22%, led by highway conversions • International volume up 4%, driven by improving global demand • Premium volume up 14%, driven by gains in parcel and LTL markets

  6. Outlook – Business Portfolio

  7. NS 2011 Capital Improvement Budget Total Capital Program = $2.2B in 2011 Baseline Capital Program • $1.7B; 19% more than 2010 total • Maintain Safety; Support Business Growth • Maintenance of Way; Facilities & Terminals; Locomotives; Technology • Infrastructure (Mid - America; Crescent Corridor, CREATE) Additional Capital Program • $480M • Freight Car Purchases – historically leased {$334M} • Positive Train Control – upgrades to system and track structure {$146M} $146M $763M $334M $79M $212M

  8. Hot Topics in Rail Transportation: Capex 2011 – Large Rail Capex U.S. Class I Railroad Capital Spending ($ Billions) e - preliminary AAR estimate Source: AAR

  9. NS Corridor Strategy PanAm Southern Corridor Mechanicville Ayer Detroit Premier Route Bethlehem Chicago NY/NJ Greencastle Philadelphia Columbus Heartland Corridor Cincinnati Lynchburg Pritchard Roanoke Norfolk MidAmerica Corridor Charlotte Memphis Corinth Atlanta Birmingham Crescent Corridor Shreveport Meridian Meridian Speedway Jacksonville New Orleans Titusville Titusville

  10. NS has made significant progress on network investments targeting Intermodal growth • Meridian Speedway: $300mm • Complete 2010 • Heartland Corridor: $290mm • Service Launched Sept. 2010 • Pan Am Southern: $140mm • Complete 2010 / 2011 • Ph I Crescent Corridor: $600mm • Launched 2008

  11. NS Infrastructure Investment Northeast PA Sidings Northeast PA Sidings Cleveland, OH Cleveland, OH Dayton District Dayton District Croxton, NJ Croxton, NJ Claypool, IN Claypool, IN New Castle New Castle Harrisburg, PA Harrisburg, PA Illinois Illinois CNOTP CNOTP Alloy, WV Alloy, WV Mt. Carmel, IL Mt. Carmel, IL Atlanta North Atlanta North Charleston Corridor Charleston Corridor Memphis - Chattanooga Memphis - Chattanooga Eastern N. Carolina Eastern N. Carolina B’ham - Atlanta B’ham - Atlanta Savannah, GA Savannah, GA Burstall, AL Burstall, AL Macon - Jacksonville Macon - Jacksonville Meridian, MS Meridian, MS Atlanta Atlanta Jacksonville Jacksonville

  12. The Rail Market Ahead • Complexity - multiple markets, channels, and shifting industrial production/global trade patterns • Motor carrier costs will continue to rise and capacity will decline or remain static • Approximately 80% of intercity freight tonnage originates or terminates within the NS service area • Highway conversions and continued yield management will be key drivers • Environmental advantages of rail shipping will become more prominent

  13. Our Goal: Be the safest, most customer-focused and successful transportation company in the world

More Related