Norfolk Southern announced that it is consolidating its three operating regions into two, effective 15 March. The decision to further streamline railway operations is part of the company’s ongoing execution of its five-year strategic plan, announced in December 2015, to enhance operating efficiencies, reduce costs, drive profitability, and accelerate growth.
Under the new structure, Norfolk Southern’s network will be divided into Northern and Southern regions only. The Northern Region will include the Harrisburg, Pittsburgh, Dearborn, Lake, and Illinois divisions. The Southern Region will include the Piedmont, Alabama, Georgia, Central, and Pocahontas divisions.
Each of the two consolidated regions will support approximately 1,000 daily crew starts for long-haul train operations, connecting customers and communities to global markets with freight rail that moves consumer goods, automobiles, coal, grain, and products essential to U.S. households, businesses, and industries.
“We are committed to aggressively controlling costs while delivering the high levels of superior service that our customers value. 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 five-year strategic plan, we are confident that these steps will make Norfolk Southern a faster, lower-cost, and more profitable railroad,” said Mike Wheeler, executive vice president and chief operating officer.
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