1. The Growth Ahead ITAC Fall 2004 San Antonio, TX Blair Hanna Mgr eCommerce

2. Rail Highway - Merchandise Volume 2003 - 2004

3. Overall Volume (000’s) AAR Carloads weeks 1-38

4. Forecasted Ton-mile Growth (in billions) 65% 47% Source - AASHTO 2,500

5. Normal US economic expansion based on population growth Drivers of Change and Growth Global economic expansion Greater constraints for trucking industry Increasing energy prices

6. Managing Growth at Norfolk Southern

7. Crew Hiring Plan

8. Network Operating Plan TOP Steering Committee Up-to-date corporate Marketing demand forecast Add additional train service Operating Plan Developer (OPD) computer model analyzes train blocks & routes Opportunities to bypass yards Redesigned Thoroughbred Operating Plan (TOP)

9. Increasing Capacity Reopened Sevier yard at Knoxville, TN on July 27 Completed $18 million expansion at Enola yard in Harrisburg, PA Expanded Intermodal terminal capacity at: Harrisburg, PA Port Elizabeth, NJ (E-rail) Croxton, NJ Detroit, MI Additional main track siding capacity at Saulsbury, TN and Sheffield and Brownsville, AL

10. Locomotives 90 new locomotives delivered through July 2004 117 new locomotives to be delivered in 4th quarter Lease up to 80 locomotives for peak season Ramped up locomotive overhaul program 2004 retirements reduced

11. Freight Cars Enhanced car repair program resulting in 14% increase in scheduled car repairs over 2003 Renewed expiring equipment leases representing 2,429 cars Additions to NS Fleet in 2004 250 60-ft, plate F boxcars (new builds) 75 pressure differential hoppers (new builds) 400 covered coil cars 2,000 double stack platforms and 1,000 conventional 300 bi-levels (new builds) Established 20 independent car-prepping contractors at strategic locations

12. Communication Posted and automated service alerts available at www.nscorp.com www.nscorp.com Industry meetings, both railroad sponsored or shipper & shipper association sponsored Direct customer contact Customer Service Operations Center Customer site visits

13. Shortline Interline Service Agreements Executed ISA’s:  80 (representing 40% of eligible Shortline ISA’s) In Process ISA’s (Awaiting Final Sign-off):  75 (representing 38% of eligible Shortline ISA’s) Needed ISA’s:  44 (representing 22% of eligible Shortline ISA’s) Customer Service

14. eCommerce 2004 Changes Norfolk Southern Secure Website

15. E-Applications Tailored To Fit Your Business Needs - Bill of Lading- Car Orders- CTMS - Diversions- Freight Bills- Historical Tracking - Intermodal- Rate Inquiry- Report Wizard - Trains Inquiries - Transit Times- Trip Plans - Unit Trains- Umler - Waybills Forecast Demand Order & Confirm Empty Transit Empty Placement Release, Waybill & Manifest Issue Freight Invoice Origin Pull or Pick-Up Loaded Transit Reactive Trace & ETA Reactive Problem Resolve Loaded Placement Empty Release Resolve Freight Claims Assess Additional Charges Customer Pay Shipment Life Cycle

16. Session Starts by Customers

17. Customers Implemented

18. Event Notifications Highlighting our most efficient Applications

19. Event Notification Reports - All major transportation events available - You determine what events you want to monitor - Receive a report “Only” when an event occurs

20. Event Notification Reports - Report is sent automatically when change occurs - You determine how you want notified - fax, email, FTP - Also determine how long to run report

21. - Detailed report showing event information - Newest event reporting highlighted in yellow - ETA reports indicating change also available

22. Diversions and Reconsignment Diversions with a new look!

23. Automated Diversion Process - Divert a railcar - Reconsignments and Destination Turnovers - Private Empty Car Disposition

24. - Complete user friendly request screen - Look up features to ensure accuracy - Use previous Diversion to reduce impute - Same look for Diversion, Reconsignment and Empties Create a Diversion

25. - Best feature is immediate gratification - Easy to read acknowledgment summary - Log of historical activities always available

26. Coming Soon to accessNS Historical Transit Reports

27. - Report consists of a Shipper or Receiver Report - Transit times on and off NS (NS in route traffic) - Bad Order effect noted Transit Report Summary

28. - Very detailed information - Current and Previous Month - Origin/Shipper - Destination/Receiver - NS Transit and Offline when available - Hyperlink to entire movement detail Transit Report Detail

29. Echelp@nscorp.com or 1-800-235-5551