Bracing for autonomous truck competition, Norfolk Southern maps out improvements

Norfolk Southern (NYSE: NSC) is in the midst of deploying longer trains and increasing car velocity as ways to enhance the railroad’s productivity, executives said during a call on Wednesday to discuss NS’ financial results for the first quarter of 2021. 

To make these operational adjustments, NS is targeting investments in certain parts of its network, including a long siding extension in its Chicago-Atlanta corridor that will be completed ahead of this year’s peak season, according to Chief Operating Officer Cindy Sanborn. Two other areas could also see siding construction this year, she said.

NS also completed in the first quarter an initial assessment of incremental infrastructure that will aid its long-train initiative, Sanborn said.

“We’ve undertaken a series of focused initiatives to improve capacity and drive down dwell at our major terminals, including current humps as well as flat switching operations,” Sanborn said. These improvements support the longer and heavier trains we are running, allowing us to operate efficiently with fewer resources.

NS has hired team members who have experience with precision scheduled railroading, including the February appointment of Hunt Cary, a 28-year railroad veteran who most recently served as vice president of intermodal operations at Union Pacific (NYSE: UNP). These new members will serve alongside NS’ field team to increase productivity inside NS’ major hump and flat switching terminals, Sanborn said.