Norfolk Southern rolls out consolidation plan for Central Division headquarters
Class I railroad carrier Norfolk Southern (NS) recently rolled out its plans to consolidate its Knoxville, Tenn.-based Central Division headquarters into three surrounding divisions around November 1.
NS officials said this move is part of the railroad’s ongoing efforts to enhance customer service and improve operating efficiencies, adding that this consolidation will reduce the number of operating divisions on NS’ system to nine from 10. And it said that dispatching responsibilities now handled from the Central Division, which includes track primarily in Tennessee and Kentucky, will be divided among operating divisions headquartered in Birmingham, Ala., Decatur, Ill., and Fort Wayne, Ind.
Current yard and field operations on the Central Division will not be affected by the headquarters closure but will be reassigned among the other three divisions, NS said.
NS said that this move is a continuation of the steps it took in 2016, when NS consolidated from 11 to 10 divisions and reduced the number of operating regions by a third.
On the company’s recent second quarter earnings call, NS Executive Vice President and Chief Marketing Officer Alan Shaw said that the company’s strategic plan maintains a focus on the customer experience.
“Part of this focus includes working with our customers to align our service metrics with our customers' view of our performance, as well as partnering to ensure we provide effective tools to schedule and manage their business with Norfolk Southern,” he said. “Our aim is to continually evolve the elements of our operations that drive quality growth and efficiency. This approach increases our value to customers and strengthens our position in the marketplace for the near and long term.”
Second-quarter net income for NS at $497 million marked a 23% annual increased, while railway operating revenues of $2.6 billion rose 7% compared with second-quarter 2016, and overall volumes were up 6%, reflecting growth
