Norfolk Southern combines railways to streamline operations

Norfolk Southern Corp. (NS), Norfolk, Va., announced plans to consolidate its three operating regions into two, effective March 15, to enhance operating efficiencies, reduce costs, drive profitability and accelerate growth. NS is targeting annual expense savings of $650 million by 2020.

“We are committed to aggressively controlling costs while delivering the high levels of superior service that our customers value,” says Mike Wheeler, executive vice president and chief operating officer. “Consolidating our operating regions will generate productivity savings, not only through right-sizing, but also by leveraging advancements in train dispatch technologies that support more fluid and efficient movement of freight across the network. As we continue to execute on our 5-year strategic plan, we are confident that these steps will make Norfolk Southern a faster, lower-cost and more profitable railroad.”