NS Cites 2016 Progress in Meeting Strategic Goals

Norfolk Southern released it 2016 annual report this week and claims to be well on its way to achieving goals that it hopes to reach by 2020.

NS CEO James Squires said in a news release that the railroad is in the midst of implementing a five-year strategic plan to streamline operations and drive profitability and growth.

Squires told NS stockholders that the railroad in 2016  met or exceeded its targets to lower operating costs, increase profitability and improve customer service.

In a news release, NS said that during 2016 it:

• Achieved an all-time best operating ratio of 68.9 percent.
• Reduced expenses in all areas of operations to generate $250 million worth of savings, surpassing a targeted $130 million.
• Increased income from railway operations and net income by 7 percent each, driven by an 11 percent decrease in operating costs.
• Disposed of 1,000 miles of secondary rail lines.

Squires said NS also made progress in its efforts to improve locomotive fuel-efficiency, reliability and emissions reduction continued as a cornerstone of the company’s sustainability and business strategy, he said.

NS is seeking to be “more focused than ever on services that will help convert freight from highway to rail,” Squires said.

This means focusing on customer-service initiatives that range from modernizing its e-commerce platforms to developing shared performance indicators for measuring service.

“We are changing the way we do business in order to meet and exceed our customers’ expectations and to drive superior value creation for shareholders,” Squires said.

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