Norfolk Southern Corporation (Norfolk Southern) was incorporated on July 23, 1980,
under the laws of the Commonwealth of Virginia. On June'l, 1982, Norfolk Southern
acquired control of two major operating railroads, Norfolk and Western Railway
Company (NW) and Southern Railway Company (Southern) in accordance with an Agreement
of Merger and Reorganization dated as of July 31, 1980, and with the approval
of the transaction by the Interstate Commerce Commission (ICC) (now the Surface
Transportation Board [STB]).
NS railroads operated approximately 21,500'miles of road in the states of
Alabama, Delaware, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana,
Maryland, Michigan, Mississippi, Missouri, New Jersey, New York, North Carolina,
Ohio, Pennsylvania, South Carolina, Tennessee, Virginia, West Virginia, the
District of Columbia and in the Province of Ontario, Canada.
NS railroads carry raw materials, intermediate products and finished goods
primarily in the Southeast, East and Midwest, and via interchange with other
rail carriers, to and from the rest of the United States and parts of Canada.
They also transport overseas freight through several Atlantic and Gulf Coast
ports. Atlantic ports served by NS include: Norfolk, Virginia; Morehead City,
North Carolina; Charleston, South Carolina; Savannah and Brunswick, Georgia;
Jacksonville, Florida; Baltimore, Maryland; Philadelphia, Pennsylvania/Camden,
New Jersey; Wilmington, Delaware; and the Ports of New York/New Jersey. Gulf
Coast ports served include Mobile, Alabama and New Orleans, Louisiana.
The lines of NS railroads reach most of the larger industrial and trading
centers of the Southeast, Northeast, Mid-Atlantic region and Midwest. Chicago,
Norfolk, Detroit, Atlanta, Metropolitan New York City, Jacksonville, Kansas
City (Missouri), Baltimore, Buffalo, Charleston, Cleveland, Columbus, Philadelphia,
Pittsburgh, Toledo, Greensboro, Charlotte and Savannah are among the leading
centers originating and terminating freight traffic on the system.
In addition, haulage arrangements with connecting carriers allow NS railroads
to provide single-line service to and from additional markets, including haulage
provided by Florida East Coast Railway Company to serve southern and eastern
Florida, including the port cities of Miami, West Palm Beach and Fort Lauderdale;
and haulage provided by The Kansas City Southern Railway Company to provide
transcontinental intermodal service via a connection with the Burlington Northern
and Santa Fe Railway Company. Service is provided to New England, including
the Port of Boston, via haulage, trackage rights and interline arrangements
with Canadian Pacific Railway Company and Guilford Transportation Industries.
The systems lines also reach many individual industries, electric generating
facilities, mines (in western Virginia, eastern Kentucky, southern and northern
West Virginia and western Pennsylvania), distribution centers, transload facilities
and other businesses located in smaller communities in its service area. The
traffic corridors carrying the heaviest volumes of freight include those from
the New York City area to Chicago (via Allentown and Pittsburgh); Chicago to
Jacksonville (via Cincinnati, Chattanooga and Atlanta); Appalachian coal fields
of Virginia, West Virginia and Kentucky to Norfolk, Virginia and Sandusky, Ohio;
Cleveland to Kansas City; and Knoxville to Chattanooga.
Chicago, Memphis, Sidney/Salem, New Orleans, Kansas City, Buffalo, St. Louis
and Meridian are major gateways for interterritorial system traffic.
COMPETITION'- There is continuing strong competition among rail, water and
highway carriers. Price is usually only one factor of importance as shippers
and receivers choose a transport mode and specific hauling company. Inventory
carrying costs, service reliability, ease of handling and the desire to avoid
loss and damage during transit are also important considerations, especially
for higher-valued finished goods, machinery and consumer products. Even for
raw materials, semifinished goods and work-in-process, users are increasingly
sensitive to transport arrangements that minimize problems at successive production
stages.
NS primary rail competitor is the CSX system; both operate throughout much
of the same territory. Other railroads also operate in parts of the territory.
NS also competes with motor carriers, water carriers and with shippers who have
the additional option of handling their own goods in private carriage.