1. Robert E. Martínez Norfolk Southern Corporation Indiana Logistics Summit Indianapolis November 14, 2006

2. Markets, Transportation Markets, Market Change and Transportation Policy; and The Economics of Rail

4. Railroads are Highly Capital Intensive Source: JPMorgan Estimates and Company Reports.

5. Capex/Revenue in Industrial Sectors Source: JPMorgan Estimates and Company Reports.

6. The railroad industry has not been earning its cost of capital

9. NS Principles on Public/Private Partnerships  No safety degradation  Voluntary on both sides  Public sector pays for public or societal benefits  Norfolk Southern pays for railroad benefits  Benefits, costs and risks are shared proportionately

10. NS Principles on Public/Private Partnerships (cont’d)  NS commits to performance standards in return for public participation  Planning must be coordinated among all stakeholders to ensure prudent investments  Planning must be executed in a manner consistent with rail regulatory requirements, ownership rights, and market conditions  The project must produce a more balanced transportation policy

13. NS Business Mix by Revenue Q3 05 – Q2 06 Revenue: $9.107 Billion

14. Long Term Conventional Intermodal Volume Growth Y-T-D 2006 vs. Y-T-D 2005

15. 33 NS Terminals 19 Private / Port Terminals 8,300 Route Miles Chicago -Ashland Ave. Hub Atlanta-Austell Hub Harrisburg - Rutherford Hub Intermodal Network

16. 33 NS Terminals 19 Private / Port Terminals 8,300 Route Miles Hub and Spoke Network – how it works - (From So-Cal) (From PNW)

17. Charlotte Charleston Savannah Jacksonville Miami New York Baltimore Norfolk Philadelphia Oakland/ Richmond, CA Los Angeles, San Bernardino, Ports Ports of Seattle and Tacoma Atlanta Huntsville Boston Albany Clovis, NM Chicago Union Pacific Burlington Northern Santa Fe Norfolk Southern Kansas City Southern Norfolk Southern Intermodal Transcon Network El Paso Dallas Memphis Buffalo Columbus Cleveland Detroit Louisville Cincinnati Pittsburgh

18. Panama Canal

19. Suez Canal

20. Charlotte Norfolk / Ports of Hampton Roads East Coast Port Services Columbus Cincinnati Louisville Detroit Toronto Montrea l Dallas Huntsville Memphis Birmingham New Orleans Pittsburgh Cleveland St. Louis Kansas City Chicago Atlanta Jacksonville Savannah Charleston Miami Elizabeth Marine Terminal

21. The Norfolk Southern Intermodal System Map Doublestack Clearances

22. Central Corridor Double-Stack Project: The current clearance envelope through western Virginia, West Virginia and Kentucky only accommodates railcars up to 19’1” multi-levels. No double-stack cars can be accommodated due to the height, as well as the square profile of the conveyance.

23. Columbus The Port of Virginia Harrisburg Kenova Prichard Roanoke ChicagoCleveland Heartland Corridor

24. The Heartland Corridor Portsmouth Norfolk 664 264 464 164 CIDMMA PMT NITNIT APM CRMSRP Project (Median Rail) CIMT (Proposed) Columbus Rickenbacker Ashville Huntington Kenova Prichard Williamson Welch Bluefield Roanoke Petersburg Richmond Washington, DC Christiansburg Portsmouth To Chicago, Detroit, & Points West VA OH WV KY Portsmouth COMPONENT LEGEN D Central Corridor Double-Stack Initiative Prichard Intermodal Terminal Roanoke Region Intermodal Terminal Rickenbacker Intermodal Terminal Commonwealth Railway Mainline Safety Relocation Project (CRMSRP)