Dr. Rob Martínez Vice President Business Development. January 2015

Transcription

1 Dr. Rob Martínez Vice President Business Development January 2015

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3 NS 2014 Business Portfolio Agriculture 13% MetCon 13% Paper 7% Intermodal 22% Chemicals 16% Coal 20% Automotive 9% $11.6 Billion in Revenue

4 Major Drivers of Our Business Energy Manufacturing Intermodal Agriculture

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6 Shale Gas Production Source: EIA

7 trillion kilowatt hours U.S. Electricity Generation by Source History Projection 5 4 Natural gas % 10% 20% 30% 12% 19% Renewables Nuclear 1 4% 52% Petroleum liquids & other 37% Coal 1% Source: EIA Annual Energy Outlook 2014

8 Petroleum and Coal Products Exports and Imports in Billions of Dollars $140 $ Trade Surplus: $28.5 Billion $100 $80 $60 $40 $20 $ Exports Imports Source: National Association of Manufacturers; Bureau of Economic Analysis

9 Source: Boston Consulting Group

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12 Labor Costs in the Manufacturing Sector Source: Area Development Online

13 Manufacturing Production Manufacturing Production/ Capacity Utilization % Manufacturing Production Capacity Utilization Source: National Association of Manufacturers; Federal Reserve Board

14 ISM Manufacturing Index December 2014: Expansion Contraction Source: Institute for Supply Management

15 Vehicle Production and Sales Annual North American Light Vehicle Production (in millions) North American Light Vehicle Production expected to continue growing steadily to 18.1 million vehicles in U.S. Light Vehicle Sales projected to grow to over 17.0 million vehicles by Source: WardsAuto, January 2015

16 U.S.-Manufactured Goods Exports, Billions of Dollars, Seasonally Adjusted $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $ Durable Goods Manufactured Goods Nondurable Goods Source: National Association of Manufacturers; U.S. Department of Commerce

17 Manufacturing Employment Growth December 2007 = Nonfarm Payrolls Manufacturing Durable Goods Nondurable Goods Source: National Association of Manufacturers; Bureau of Labor Statistics

18 Growth in Foreign Domestic Investment (FDI) in Manufacturing Since 2005 FDI in manufacturing grew by $399.1 billion from 2005 to 2012, increasing by nearly 80 percent. Source: National Association of Manufacturing; Bureau of Economic Analysis

19 U.S. Dollar Versus Major Currencies Trade Weighted Index March 1973 = Basket (EUR, CAD, JPY, GBP, CHF, AUD, SEK) Source: Federal Reserve Bank of St Louis

20 Scratching the Surface Significant opportunity for growth remains 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 Scratching the Surface Significant opportunity Over 550 Miles for growth remains 25,000,000 Total US Truck and IM Moves Drivers of highway conversion Highway congestion 20,000,000 15,000,000 10,000,000 5,000,000 Driver wages Regulatory action Environmental 0 Fuel cost Domestic Intermodal Shipments Long-Haul Truckloads Source: TTX; IANA 20

21 Intermodal Volume: ,500,000 Intermodal Volume Business Segments: ,000,000 3,500,000 3,000,000 2,500,000 2,000,000 Premium 9% IMC 12% Truckload 46% 1,500,000 1,000,000 Int'l 33% 500, DOMESTIC INTERNATIONAL PREMIUM TRIPLE CROWN

22 Intermodal Market Drivers For Ship Lines: Increased deployment of Suez services utilizing post-panamax ships at East Coast ports. Streamlined, efficient rail interchanges from West Coast gateways to heartland markets. For Ports: Increasing use of rail inland distribution points to maximize capacity and efficiency of marine terminals. For BCO shippers: Sustainable capacity and cost-savings vs. OTR in key short haul markets. Risks: Global economic conditions Image: martinprosperity.org/

23 Norfolk Southern Port Services Chicago Detroit Cleveland Harrisburg NY/NJ Kansas City Decatur Cincinnati Pittsburgh Columbus Front Royal Baltimore St. Louis Louisville Norfolk Greensboro Memphis Huntsville Greer Charlotte Dallas Birmingham Atlanta Savannah Charleston New Orleans Jacksonville CONFIDENTIAL

24 International Volume ,400,000 1,200,000 Volume Volume Distribution* Other 4% 1,000, ,000 WC 35% 600, ,000 EC 61% 200, *Volume distribution for 1Q-3Q 2014 only

25 International Trade Characteristics NS East Coast vs. West Coast Market Share NS International Length of Haul 100% 60% 90% 80% 50% % 60% 50% 40% 30% % 20% 30% 20% 10% 10% 0% * East Coast West Coast 0% Up to 600 Miles (965 km) Miles ( km) * Over 1200 Miles (1930 km) Share growth in points from 2006 to 2014 Note: * 2014 through November

26 US Import/Export Container Volume Growth January October 2014 vs % 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 8.2% 7.5% 5.5% 4.9% 4.3% 2.6% US EC US WC Total Imports Exports Source: Port Websites; WC: LAX, LGB, OAK, PDX, SEA, TAC; EC: NYC, BAL, ORF, CHS, SAV

27 Global Changes Increase Opportunity NY/NJ Norfolk Savannah Charleston Jacksonville Miami

28 Where is the Opportunity? With improvements in service and facilities, intermodal is becoming more competitive in shorter distances, absorbing more of the projected growth in freight. Source: FRA s National Rail Plan; Hub Group

29 Norfolk Southern s Intermodal Network Buffalo Ayer Albany Detroit Chicago Livernois 47th Street Delray Toledo Landers NY/NJ Taylor 63rd Street Calumet Ashland Ave Cleveland Harrisburg/ Rutherford Pittsburgh Bethlehem Erail Elizabeth Marine Terminal NYCT PNCT Morrisville/Navy Yard Baltimore Columbus Decatur Croxton Front Royal Cincinnati Gest Street Kansas City Sharonville St Louis Louisville Norfolk Georgetown Norfolk Int l Terminal Buechel Appliance Park Portsmouth Marine Terminal Oct 2013 July 2012 Newport News Marine Terminal Greensboro Huntsville Greer APM Terminal Charlotte Memphis Atlanta Dallas Austell Birmingham November 2012 Shreveport Meridian Dec 2013 Inman Charleston/ Marine Terminal Savannah Mason ICTF Completion Dates NS Intermodal Network Premier 1995 Network Intermodal MSLLC Haulage 2011 Extensions Port Wentworth Jacksonville Heartland New Orleans Titusville PanAm Southern Crescent Ph I Ft Lauderdale Miami Intermodal Terminals 2011 On-Dock Access 2012 Interchange Gateways 2012

30 Toronto Buffalo Ayer Miami

31 Record Corn and Soybean Crops Source: USDA, National Agricultural Statistics Service

32 Agriculture is also a driver

33 Thank You