Norfolk Southern has posted its 2015 annual report online and CEO James Squires touted early highlights of the company’s five-year strategic plan to promote growth, streamline operations, improve network performance and deliver enhanced shareholder value.
“This year (2016) we expect to achieve productivity savings of $130 million through disciplined cost control and asset utilization,” Squire wrote. “Annual savings will grow to more than $650 million by 2020. The projects we accomplished in 2015, together with the initiatives we are undertaking over the next five years, will position Norfolk Southern to achieve our long-term financial goals.”
Among the steps cited by the report that NS said it has taken to cut costs and improve its network are:
- Closing the Roanoke, Virginia, office building and consolidating or relocating approximately 500 positions.
- Restructuring the company’s Triple Crown Services subsidiary.
- Reducing capital spending.
- Expanding track rationalization in the coalfields.
- Idling a major lake coal terminal in Ashtabula.
- Consolidating two operating divisions.
NS said it has implemented these measures while still maintaining its commitment to providing good customer service. “During this time, we achieved near all-time best service levels,” Squires wrote.
NS also noted that it expanded its ability to serve the Northeast through acquiring the Delaware & Hudson line between Sunbury, Pennsylvania, and Schenectady, New York.