Biz NS SSUE I ERE I PREM January-February 2009 | Volume 1, Volume Issue 1 Public-private partnerships NS’ changing work force N Public-Private BNizS Partnerships Jan-Feb ’09 are a winning proposition 1 PUBLIC-PRIVATE PARTNERSHIPS CRESCENT 4 CORRIDOR CHICAGO — 6 CREATE HEARTLAND 8 CORRIDOR 10 A CHANGING WORK FORCE 14 T-SCHOOL OpERATIONS 16 S UPERVISOR TRAINING MANAGEMENT 19 MILLENNIALS GOOD FOR VETS, 22 CAREER LAUNCH 24 OTHER NEWS 2 BizNS January/February 2009 Growing Norfolk Southern’s business plus improving the environment and the communities NS serves are compatible goals when the company works with federal, state, and local governments on major improvement projects. Known as public-private partnerships, they can accelerate improvements and provide significant mutual benefits. What are they and why are they important? “A public-private partnership occurs when we are able to partner with the federal and state governments to jointly fund a project that has both public and private benefits,” said Jim Hixon, executive vice president law and corporate relations. “NS pays for the private benefits, and public money is used to help fund the public benefits.” Hixon said NS is able to make improvements to its “These types of projects infrastructure quicker and help communities gain can take a very long significant benefits. time to complete if “These types of projects can take a very long time to complete if Norfolk Southern has to fund them on its Norfolk Southern has to own,” Hixon said. “With the help of some public funds, fund them on its own. we can expedite those projects and create opportunities With the help of some for everyone involved.” public funds, we can In the past, railroads have been reluctant to ask for public money, but times have changed. expedite those projects “For many years, we did not want to ask for public and create opportunities funding, because we thought there were too many for everyone involved.” strings attached,” said Bruno Maestri, vice president government relations. “In today’s environment, we realize that where there is a clear public benefit, it is appropriate to consider a public-private partnership to n Illustration depicts conver- accelerate the completion of those projects and all the sion of freight traffic from benefits that accrue to the partners.” highway to rail. Public-private Maestri said the tipping points for many state partnerships help create governments are truck congestion, fuel savings, and additional capacity for growth Norfolk Southern’s willingness to invest in the private in rail intermodal traffic. benefits to be realized. Norfolk Southern Corporation 1 Federal and state governments are realizing the advantages of rail transportation in reducing emissions, highway congestion, job creation, and fuel efficiency. Freight trains can move a ton of freight an average Intermodal projects can reduce highway congestion by of 436 miles on a single gallon of diesel fuel. This putting freight on rail cars instead of in trucks. A single makes a jointly funded project more attractive. intermodal train can haul the same volume of freight “The public benefit must be clearly identified, and as nearly 300 trucks. A train carrying freight other than the transaction must be transparent,” Maestri said. intermodal can take up to 500 trucks off the highway. An internal committee at NS is charged with “We not only help reduce congestion, but we are identifying projects that could be candidates for these more fuel efficient than over-the-road trucks, which in joint ventures. turn leads to reduced emissions,” McClellan said. “In Projects to increase intermodal traffic are good some projects, we’re able to help create jobs in the candidates, according to Mike McClellan, vice communities along the route.” president intermodal and automotive marketing. Still, public-private partnerships are not always an “We try to identify potential projects that are easy sell. extraordinarily strategic for Norfolk Southern’s future, “We work hard to help our elected representatives and then think about how best to fund them,” understand the strategic importance of rail transportation McClellan said. “Those that have very clear public to the nation’s economic future,” Maestri said. “We benefits are likely to be presented as public-private tell our story about what we carry, where we go, our partnership opportunities.” 2 BizNS January/February 2009 n Modern facilities such as this one in Austell, Ga., will provide improved transit times for intermodal shippers. Improvements to the Heartland Corridor will allow double-stack intermodal shipments between Norfolk, Va., and Columbus, Ohio, for the first time. costs and investments, our customers, and the many opportunities for expanding rail transportation. We show them how we can help eliminate some of the “We not only help quality of life issues and highway safety issues they reduce congestion, face in their communities. When we connect on those issues, we have more opportunity to explore how we but we are more fuel can help each other.” efficient than over-the- NS has a number of public-private partnerships road trucks, which under way —the Crescent Corridor, the Chicago Region in turn leads to Environmental and Transportation Efficiency—or CREATE—, and the Heartland Corridor projects. reduced emissions.” What does the future hold for these partnerships? “We will continue to look for appropriate projects and work with the states and the federal government to jointly develop them,” Hixon said. “Everyone gets a lot more for their investment.” n BizNS Norfolk Southern Corporation 3 Crescent Corridor project aims to increase capacity for intermodal growth, reduce carbon footprint Opening new avenues for domestic intermodal business and improving environmental quality are the goals in developing Norfolk Southern’s Crescent Corridor. The corridor is a north-south route from northern New Jersey to Atlanta, west to Memphis, Tenn., and south to New Orleans. The corridor uses two main lines that roughly parallel I-81 and I-85 in Virginia and North Carolina. Why did NS choose this particular route? Mike an important link with former Conrail lines, so it was critical McClellan, vice president automotive and intermodal to make some improvements,” said Bill Schafer, director marketing, said much of the impetus came from NS’ strategic planning. shippers and domestic channel partners looking for a Schafer said with the addition of former Conrail lines better network for domestic intermodal traffic to move to NS’ system, intermodal traffic has grown significantly, between the Northeast and the Southeast paralleling making upgrades to this connection essential. I-81 and other key highways. The line also serves the Virginia Inland Port and local “Unlike the Heartland Corridor, which primarily industries. Further improvements include upgrading the supports our international business, the Crescent Corridor connection at Front Royal and extending a passing track is focused on our domestic business. We worked with our at Berryville, Va. When complete, the upgrades will allow intermodal customers, more trains to traverse the branch line at higher speeds. Because the average and especially our McClellan said the Crescent Corridor will help improve intermodal train replaces 300 domestic intermodal asset utilization, reduce transit times, and grow business trucks on the highway, saves partners, to determine for NS and its domestic intermodal partners. Other fuel, and has a smaller carbon where the best factors have played a role in developing the corridor. opportunities to convert “Growth along the I-81 and I-85 corridors has footprint, rail transportation is highway freight to NS increased highway congestion to a point where the public a good option to consider for would be,” McClellan is asking the states to help relieve it,” Schafer said. public-private partnerships. said. “This particular “States and the federal government have realized the corridor provides value of rail transportation in that equation and are very opportunities for us to compete with single-driver, supportive of developing more rail opportunities.” over-the-road truck shipments of more than 550 miles, Schafer said because the average intermodal train in partnership with our key domestic service providers.” replaces 300 trucks on the highway, saves fuel, and has a McClellan said the goal is to offer high-speed, reliable, smaller carbon footprint, rail transportation is a good premium service to intermodal customers shipping option to consider for public-private partnerships. between the Northeast and the Southeast. “We believe that the Crescent Corridor will bring The commonwealth of Virginia committed $45 million to relief to highway congestion, ultimately attracting more jump-start the project. Work on the corridor began in 2008 than a million truck shipments to rail in a given year,” with improvements along a branch line between Manassas Schafer said. “Initially, nearly 350,000 truck shipments and Front Royal, Va. They include signals, the addition of could be taken off the highways.” three full-size passing tracks, and a five-mile segment of Public funding for more improvements has not been double track. NS is matching the state funds it received. secured, and McClellan said further development will “This branch line was built before the Civil War and is take place as it is funded. 4 BizNS January/February 2009 81 North Jersey 81 Allentown New York 78 78 Bethlehem Harrisburg Reading Pittsburgh Columbus 76 Trenton