Norfolk Southern Corporation · NYSE:NSC
Norfolk Southern — Investor Day (June 2009)
15 slides from Norfolk Southern's investor day presentation, Jun 4, 2009
Slide 1: Track 2012 and Capital Update
Track 2012 and Capital Update Deb Butler Executive Vice President Planning & Chief Information Officer Good morning. As Wick mentioned, while we focus on cost control to weather the near-term economic uncertainty, we are continuing to manage for the long-term. Two examples of this commitment are the
Slide 2: Track 2012 key drivers
Key drivers Safety Revenue growth Service improvement Asset utilization Fuel efficiency Workforce productivity Track 2012 is the five year plan that we initiated last year. It is our process to continuously improve safety and service, drive further operating efficiencies, and deliver better financia
Slide 3: Initiatives: Safety and Service improvement
Initiatives Safety Optimized Train Control (OTC) Automated Issuance of Track Time Revenue growth Service improvement Unified Train Control System (UTCS) Tactical Yard Planner Starting with the safety driver, we’re focused first and foremost on OTC which is Norfolk Southern’s version of positive trai
Slide 4: Initiatives: Asset utilization
Initiatives Asset utilization Process Control Implementation Thoroughbred Locomotive System (TLS) Locomotive Assignment and Routing System (LARS) ABC Next Generation Geographic Information System (GIS) Shifting to asset utilization, the process control implementation initiative is a project to insta
Slide 5: Initiatives: Fuel efficiency
Initiatives Fuel efficiency Locomotive Engineer Assist Display and Event Recorder (LEADER) Wireless Event Recorder Information System (WERIS) Top-of-Rail Friction Modification Turning now to our fuel efficiency initiatives, you heard about LEADER from Coleman this morning. WERIS, which stands for Wi
Slide 6: Initiatives: Workforce productivity
Initiatives Workforce productivity Remote Control Locomotives Optimizing Crew Districts Vacation Scheduling and Attendance Productivity of Maintenance Activities Finally, in terms of workforce productivity, you heard about several of our workforce productivity initiatives from Mike this morning. One
Slide 7: Capital Expenditures (millions) 2004-2009
Capital Expenditures (millions) 2004 2005 2006 2007 2008 2009 Total 1041 1025 1178 1341 1558 1301 projected Let me turn now to another indication of Norfolk Southern’s commitment to, and confidence in, our future – our 2009 capital expense budget. Current planned capital investments in 2009 are proj
Slide 8: 2009 capital expenditure categories
Roadway Freight Cars Locomotives Facilities/Terminals Technology Infrastructure Other total 675 35 70 95 66 167 193 Revised 2009 Capital Budget (millions) Total Spending = $1.301 billion The categories of capital expenditures we plan to make in 2009 are highlighted here. I’ll provide some detail for
Slide 9: Roadway capital expenditures
Roadway Freight Cars Locomotives Facilities/Terminals Technology Infrastructure Other total 675 35 70 95 66 167 193 Revised 2009 Capital Budget (millions) Total Spending = $1.301 billion The majority of our budget, approximately 52%, is still focused on maintaining our physical infrastructure, inclu
Slide 10: Rolling stock expenditures
Roadway Freight Cars Locomotives Facilities/Terminals Technology Infrastructure Other total 675 35 70 95 66 167 193 Revised 2009 Capital Budget (millions) Total Spending = $1.301 billion Total rolling stock expenditures of $105 million comprise 8% of our total budget and are 15% less than originally
Slide 11: Facilities and terminals investments
Roadway Freight Cars Locomotives Facilities/Terminals Technology Infrastructure Other total 675 35 70 95 66 167 193 Revised 2009 Capital Budget (millions) Total Spending = $1.301 billion Investments in facilities and terminals throughout our network will total $95 million, or 7% of our capital budge
Slide 12: Computers and technology investments
Roadway Freight Cars Locomotives Facilities/Terminals Technology Infrastructure Other total 675 35 70 95 66 167 193 Revised 2009 Capital Budget (millions) Total Spending = $1.301 billion Investments in computers and technology remain budgeted at $66 million, or 5% of our total capital expenditures.
Slide 13: Infrastructure investments
Roadway Freight Cars Locomotives Facilities/Terminals Technology Infrastructure Other total 675 35 70 95 66 167 193 Revised 2009 Capital Budget (millions) Total Spending = $1.301 billion Infrastructure investments of $167 million also remain roughly the same as originally budgeted, comprising 13% of
Slide 14: Other capital expenditures
Roadway Freight Cars Locomotives Facilities/Terminals Technology Infrastructure Other total 675 35 70 95 66 167 193 Revised 2009 Capital Budget (millions) Total Spending = $1.301 billion And finally, projects that fall outside of the categories I’ve previously described are now planned for $193 mill
Slide 15: 1990-2009 Capital Expenditures (millions)
1990-2009 Capital Expenditures (millions) 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 proj total 697 713 716 669 713 757 789 929 1060 912 917 746 695 720 1041 1025 1178 1341 1558 1301 Note: 2000 includes off balance sheet financing of locomotives This slide provides an historic view