Norfolk Southern’s Elkins on Next Chapter

Key takeaways

Norfolk Southern is focused on rebuilding its reputation and operational consistency following significant challenges.
Intermodal transport is a key area for Norfolk Southern as it strives for a competitive edge over trucking.
Operational efficiency and the pursuit of a sub-60 operating ratio are crucial goals for the company's long-term growth.
Ongoing collaborations with regulators and a strong focus on safety and trust are paramount for Norfolk Southern's success.
Ed Elkins’ journey illustrates the potential for diverse backgrounds to contribute positively to the transportation industry.

Summary

Norfolk Southern's New Chapter

The podcast discusses Norfolk Southern's current transitional phase, as it moves past a significant derailment, activism, and leadership changes. Ed Elkins, the Chief Marketing Officer, highlights the company's focus on providing consistent and safe service to attract more volume onto their network. This commitment is crucial for restoring customer trust and ensuring that their operations run smoothly.

Focus on Intermodal and Coal Demand

Elkins emphasizes the importance of intermodal transport and how it presents a greener, more cost-effective alternative to truck transportation. The conversation explores how Norfolk Southern is strategically aiming to reclaim market share, especially amidst a fluctuating trucking market. The coal market's dynamics are also discussed, noting the enduring demand for metallurgical coal in exports despite declining domestic thermal coal usage.

Operational Efficiency and Growth Strategy

The dialogue touches upon Norfolk Southern's strategies for operational improvements and their performance goals, including aiming for a sub-60 operating ratio. Elkins discusses Precision Scheduled Railroading (PSR) as a core operational strategy aimed at increasing efficiency while maintaining service quality. There is a strong focus on long-term growth prospects through flexible freight opportunities, as well as innovations made possible by their new leadership.

Regulatory Challenges and Building Trust

Elkins acknowledges the ongoing dialogues with regulators, emphasizing the importance of a favorable policy environment for railroads. He discusses how the recent changes within Norfolk Southern have fostered a culture of collaboration and trust within the organization and with unions, thus ensuring a more robust operational framework.

The Personal Journey of Ed Elkins

Towards the end, Elkins shares his personal journey from serving in the Marine Corps to becoming a leader in the railroad industry. His story underscores the role of mentorship and family influence in his career choices.

Show notes

Norfolk Southern is entering a new chapter in its history as it moves past a devastating derailment, activist activity and leadership changes. The railroad is focused on attracting volume onto its network by providing a more consistent service centered around safety. In this Talking Transports podcast, Ed Elkins, Norfolk Southern’s chief marketing officer, joins Lee Klaskow, Bloomberg Intelligence senior transportation and logistics analyst, to share his insights about how the company is making progress toward its long-term goals of generating a sub-60 operating ratio. Norfolk has made inroads to this target this year. Elkins also discusses growth opportunities, peak season, precision scheduled railroading, coal demand and how his father nudged him into a career in transportation over three decades ago.

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