goldman sachs industrials conference 2014
TRANSCRIPT
Deborah H. Butler
Executive Vice President Planning &
Chief Information Officer
Goldman Sachs Industrials Conference 2014
November 13, 2014
890.6 909.5
2013 2014
Units (000)
Current Railway Volume Fourth Quarter through Week 45 (November 8, 2014)
Total Volume: 909,549 units, up 2%
13%
11%
6%
(2%)
(5%)
(8%)
(10%)
Change in Units
4QTD 2014 vs. 2013
Paper
Automotive
Agriculture
Coal
Chemicals
MetCon
Intermodal
SERVICE RECOVERY
TODAY’S TOPICS
BUSINESS OUTLOOK
INVESTING FOR GROWTH-
INFRASTRUCTURE
PRODUCTIVITY/
TECHNOLOGY
COMPOSITE SERVICE PERFORMANCE
60%
65%
70%
75%
80%
85%
90%
2009 2010 2011 2012 2013 9 Mos2014
3rd Qtr2014
81.0%
76.7% 75.9%
83.1% 83.3%
72.2%
68.6%
NETWORK FLUIDITY
16
18
20
22
24
26
28
2009 2010 2011 2012 2013 9 Mos2014
3rd Qtr2014
23.1
21.5 21.2
23.9 23.9
21.7 20.9
Miles
per
Hour
16
18
20
22
24
26
28
2009 2010 2011 2012 2013 9 Mos2014
3rd Qtr2014
22.4
24.4 24.5
21.6 21.6
25.8 24.7
Avera
ge H
ours
TRAIN SPEED
TERMINAL DWELL
STAFF
Transfers
Vacation By Backs
Deferred Retirements
New Hiring
SERVICE IMPROVEMENT
CREWS
Transfers
Vacation Buy
Backs
Deferred
Retirements
New Hiring
INFRA-
STRUCTURE
Bellevue Expansion
Englewood Flyover
51st Street Yard
Connection
Goshen Connection
Conway Receiving
Yard
POWER
EMD SD70ACe
Order: 50 new
November &
December
SD90MAC
Order: 100
Started
September
OPERATING EFFICIENCIES
NETWORK
3Q Volume
+8%
POWER
3Q Units/Loco
+1%
3Q Fuel/GTM
(4%)
CREWS
3Q Crew Starts
+2%
3Q T&E OT
+32%
SERVICE RECOVERY
TODAY’S TOPICS
BUSINESS OUTLOOK
INVESTING FOR GROWTH-
INFRASTRUCTURE
TECHNOLOGY/
PRODUCTIVITY
BUSINESS OUTLOOK
COAL
• Weather and gas
prices decreases
utility coal demand
• Strong global market
competition
• Increased industrial
coal shipments
INTERMODAL
• Highway conversion
opportunities
• Continued growth in
Crescent Corridor
• International
shipping growth
MERCHANDISE
• Projected increases
in crude oil
• Automotive growth
• Corn and soybean
export potential
• Improved outlook
for lumber and wood
products
SERVICE RECOVERY
TODAY’S TOPICS
BUSINESS OUTLOOK
INVESTING FOR GROWTH-
INFRASTRUCTURE
TECHNOLOGY/
PRODUCTIVITY
PROJECT HIGHLIGHTS – BELLEVUE, OH
38 new tracks
38.5 mi of new rail
145 mi of new C&S cable
$160 m NS investment in
freight rail capacity
ANTICIPATED BENEFITS – BELLEVUE, OH
Fewer car
handlings
Frees space at
other terminals
Fewer car miles
2X overall yard
capacity
Chicago bypass route
SERVICE RECOVERY
TODAY’S TOPICS
BUSINESS OUTLOOK
INVESTING FOR GROWTH-
INFRASTRUCTURE
TECHNOLOGY/
PRODUCTIVITY
LOCOMOTIVES
Locomotive Engineer Assist Display / Event Recorder
LEADER complements a
locomotive engineer’s
skills by providing a
comprehensive view
of a train’s behavior
with real-time
prompts to optimize
train movement.
STEP 4: ITERATE AND RANK ALTERNATIVES FREIGHT CARS
Algorithmic Blocking & Classification
ABC identifies the
classification codes
and generates the
shortest shipment
route.
Route is based on
minimum miles and
handling across the
network.
NGauge focuses on improving the processes
and performance at all our yards.
Departments involved:
• Transportation
• Mechanical
• Engineering
TERMINAL & YARD OPERATIONS
NGauge
UTCS is a traffic
control system
that safely and
efficiently
coordinates train
movements and
maintenance
activities.
NETWORK
Unified Train Control System