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Norfolk Southern Safety 2005 and 2006

Norfolk Southern Safety 2005 and 2006 FRA Injury Ratio: Injuries per 200,000 employee hours Addressing Capacity 2006 and 2007 Forward Increasing Cars On Line Increasing Car Loadings Changes in Marketing Mix Changes in Automotive Volatility in Fuel Prices What are we doing about it?

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Norfolk Southern Safety 2005 and 2006

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  1. Norfolk Southern Safety 2005 and 2006 FRA Injury Ratio: Injuries per 200,000 employee hours

  2. Addressing Capacity 2006 and 2007 Forward • Increasing Cars On Line • Increasing Car Loadings • Changes in Marketing Mix • Changes in Automotive • Volatility in Fuel Prices What are we doing about it?

  3. Addressing Capacity 2006 and 2007 Forward • Locomotive Acquisitions • Car Acquisitions and Car Repair Programs • Hiring and Training New Personnel • Systematically Targeting Capacity and Infrastructure • Increasing Cars On Line • Increasing Car Loadings • Changes in Marketing Mix • Changes in Automotive • Volatility in Fuel Prices

  4. Capacity Improvements2006 and Beyond Locomotives: • Additions to the Locomotive Fleet: • 142 New Locomotives in 2006 • 53 New Locomotives in 2007 • 52 Rebuilds and 420 Overhauls in 2006 • Same Volume of Rebuilds and Overhauls in 2007 Cars: • Coal Car Purchases: 400 in 2006; 1,300 in 2007 • Multilevel Rebuilds continuing • Car Leasing and Renewals continuing • Life extension upgrades continues at a high level • Steady increases in car programs Personnel: • 2006: 1,318 New Conductors and 764 New Engineers • 2007: 1,100 New Conductors and 630 New Engineers

  5. C A N A D A A l b a n y C a p a c i t y I m p r o v e m e n t s A y e r B u f f a l o 2 0 0 0 t o P r e s e n t B i n g h a m t o n $ 1 3 6 m D e a r b o r n D e t r o i t C l e v e l a n d N e w a r k / N o r t h J e r s e y C h i c a g o A l t o o n a T o l e d o P h i l a d e l p h i a / S o u t h J e r s e y D e s M o i n e s H a r r i s b u r g F t . P i t t s b u r g h W i l m i n g t o n W a y n e B a l t i m o r e C o l u m b u s C i n c i n n a t i I n d i a n a p o l i s D e c a t u r R i c h m o n d L o u i s v i l l e K a n s a s B l u e f i e l d N o r f o l k S t . L o u i s C i t y R o a n o k e R a l e i g h W i n s t o n - S a l e m K n o x v i l l e A s h e v i l l e C h a r l o t t e M o r e h e a d C i t y C h a t t a n o o g a M e m p h i s G r e e n v i l l e C o l u m b i a A t l a n t a B i r m i n g h a m C h a r l e s t o n M a c o n M e r i d i a n S a v a n n a h D a l l a s B r u n s w i c k J a c k s o n v i l l e N e w P a l a t k a O r l e a n s M o b i l e Capacity Improvement Focus 2000-2005 Midwest Capacity Improvements

  6. C A N A D A A l b a n y C a p a c i t y I m p r o v e m e n t s A y e r B u f f a l o 2 0 0 0 t o P r e s e n t B i n g h a m t o n $ 1 3 6 m D e a r b o r n D e t r o i t C l e v e l a n d N e w a r k / N o r t h J e r s e y C h i c a g o A l t o o n a T o l e d o P h i l a d e l p h i a / S o u t h J e r s e y D e s M o i n e s H a r r i s b u r g F t . P i t t s b u r g h W i l m i n g t o n W a y n e B a l t i m o r e C o l u m b u s C i n c i n n a t i I n d i a n a p o l i s D e c a t u r R i c h m o n d L o u i s v i l l e K a n s a s B l u e f i e l d N o r f o l k S t . L o u i s C i t y R o a n o k e R a l e i g h W i n s t o n - S a l e m K n o x v i l l e A s h e v i l l e C h a r l o t t e M o r e h e a d C i t y C h a t t a n o o g a M e m p h i s G r e e n v i l l e C o l u m b i a A t l a n t a B i r m i n g h a m C h a r l e s t o n M a c o n M e r i d i a n S a v a n n a h D a l l a s B r u n s w i c k J a c k s o n v i l l e N e w P a l a t k a O r l e a n s M o b i l e Capacity Improvement Focus 2006-2007 Southeast Capacity Improvements

  7. Capacity Improvements2006 and Beyond In addition to Heartland Corridor and Meridian Speedway: • Louisville Intermodal Facility 11,500' Yard and Parking • Kingville, SC New Siding & Connection 10,000’ • Commerce, GA Runaround Track 3,600’ • Irvington, AL Siding Extension 9,200’ • Macon, GA Connection Track 4,320’ • Oldham, MS Siding Extension 8,700’ • Rowesville, SC New Siding 11,520’ • Austell, GA Lead Extension 5,100’ • Fargo, GA Siding Extension 3,300’ • Muscle Shoals, AL Yard Track 8,600’ • Arabi, GA Siding Extension 4,100’ • Howardville, TN Second Main 25,000’ • Austell Intermodal New 5,700' Track and Parking • Ridgeville, SC New Siding 10,800’ • Jacksonville, FL Siding Extension 8,200’ 2006 2007 And Beyond

  8. Total Cars On-LineJune 1999 and Forward 12 Week Moving Average

  9. Average Train SpeedSystem Weekly: June 1999 and Forward 12 Week Moving Average

  10. Terminal Dwell TimeSystem Weekly: June 1999 and Forward 12 Week Moving Average

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