The Role of Logistics in the Southeast Why does this matter? Jeff Heller, Norfolk Southern Freight in the Southeast Conference March 15, 2012

Key Drivers for Continued Intermodal Investment Rising demand for logistics savings from shippers and BCOs Shifting long-term supply chain patterns –Shorter haul service (250 – 1200 mi) or ( km) –Higher quality service demands –International from both coasts Continued, but tempered, U.S. economic growth Increasing environmental awareness Increasing motor carrier costs and capacity constraints

The Single Largest Challenge: Highway Capacity 2007 Peak Period Congestion 2040 Peak Period Projected

Total US Intermodal Units Originated Source: AAR

NS 1-81 Corridor Traffic Dallas Memphis Savannah Mason ICTF Charleston NS Intermodal Terminal North Charleston Marine Terminal Jacksonville NS Intermodal Terminal Talleyrand Marine Terminal Shreveport Gateway New Orleans Atlanta Charlotte Huntsville Birmingham Front Royal Harrisburg NY/NJ Greensboro Norfolk Norfolk International Terminal Portsmouth APMT Terminal Newport News Marine Terminal

NS Norfolk-Midwest and Southeast Corridors Chicago Norfolk Norfolk International Terminal Portsmouth APMT Terminal Newport News Marine Terminal Memphis Dallas Detroit Cleveland Columbus Kansas City Front Royal Harrisburg NY/NJ Cincinnati Greensboro Atlanta Louisville Birmingham Huntsville St. Louis Decatur New Orleans

Atlanta Austell Inman Charlotte Chicago 47th Street 63 rd Street Landers Calumet Ashland Ave Columbus Detroit Livernois Delray Savannah Mason ICTF Port Wentworth Miami Cincinnati Gest Street Sharonville Harrisburg/ Rutherford Front Royal Norfolk Norfolk Int’l Terminal Portsmouth Marine Terminal Newport News Marine Terminal APM Terminal New Orleans Dallas Huntsville Jacksonville Charleston/ Marine Terminal Georgetown Kansas City St Louis Louisville Buechel Appliance Park Baltimore Greensboro Toledo Decatur Taylor Cleveland Pittsburgh Ayer Albany Buffalo Titusville NY/NJ Croxton Erail Elizabeth Marine Terminal NYCT PNCT Bethlehem Morrisville/Navy Yard Shreveport Ft Lauderdale Meridian NS Intermodal Network Intermodal Network Haulage Extensions Intermodal Terminals On-Dock Access Interchange Gateways Hub / Load Centers NS Intermodal Network Intermodal Network Haulage Extensions Intermodal Terminals On-Dock Access Interchange Gateways Hub / Load Centers Memphis Birmingham Norfolk Southern’s Corridor Network Norfolk Southern’s Corridor Network Completion Dates Premier 1995 Titusville2009 MSLLC2011 Heartland 2011 PanAm Southern2012 Crescent Ph I2012 Completion Dates Premier 1995 Titusville2009 MSLLC2011 Heartland 2011 PanAm Southern2012 Crescent Ph I2012

Panama Canal In preparation for the Panama Canal widening, NS will have completed: –New Columbus Terminal –The Heartland Corridor –The Meridian Speedway –The Pan-Am Southern Corridor –New Birmingham Terminal –New Memphis Terminal Our capacity initiatives will be c will continue with a focus on enhancing network efficiency and eliminating cost

“Take Aways…” Highway and Truck Capacity will become increasingly constrained in the future Intermodal movement of International container freight will increase through East Coast Ports Public and Private investment in rail infrastructure will be required to accommodate the growth and keep freight moving throughout the Southeast

Thank You