Norfolk Southern – Come Change With Us Brian Gwin – Industrial Development

21,100 Route Miles 66,990 Bridges and Culverts 28,000 Employees 3,800 Locomotives 350 to 500 Road Trains Daily 21,100 Route Miles 66,990 Bridges and Culverts 28,000 Employees 3,800 Locomotives 350 to 500 Road Trains Daily

Norfolk Southern and the State of South Carolina in 1827 Norfolk Southern’s earliest predecessor railroad, the nine-mile South Carolina Canal & Rail Road Co. is chartered The nation's first regularly scheduled passenger train - the wood-burning "Best Friend of Charleston“ ran out of Charleston, S.C., on Christmas Day 1830.

South Carolina and Canal Railroad Company

2013 Performance  $11.2 Billion in Revenue, up 2% vs  Volume up 3% vs  RPU down (1%) vs  Continued challenges in Coal  Record volume and revenue in Intermodal  Growth in non-traditional markets Coal $2,543 (12%) Merchandise $6,318 +7% Intermodal $2,384 +6% Revenue & Percentage Change vs

2014 Capital Expenditures

Norfolk Southern is the... Fourth largest Class I railroad in North America Largest Intermodal franchise in the eastern U.S. Originator of more finished vehicles shipments than any other North American railroad Serving railroad for every major port on the East Coast between New York City and Jacksonville, Florida Railroad whose first priority is safety

Horizontal drilling and hydraulic fracturing have unlocked a tremendous resource base in N. America

Intermodal Volume: 2008 – 2018 Projecting 3.6M revenue units in – 2013 Growth : 540 K units 2013 – 2018 Growth : 970 K units

Truck Pricing Trends We are not getting the “lift” we expected from truck pricing Motor carrier pricing is the de facto ceiling for Intermodal pricing Our Domestic pricing objective is to secure business as close to truck as possible Absent any “lift” from truck pricing, we must close the gap