Improving Freight Mobility in a Changing International

Environment

Jeff HellerNorfolk Southern Corp.

October 3, 2007

Overview

The Importance of Intermodal to NS

Global Freight Movement Trends

Funding Options and Opportunities

NS Business Mix by Revenue3Q ‘06-2Q ‘07 Revenue: $9.34 Billion

Agriculture10%

Metals12%

Chemicals12%

Automotive10%

Coal25%

Intermodal22%

Paper9%

NS Volume Growth1st Qtr. 2003 – 1st Qtr. 2007

Total

Intermodal

Merchandise

Coal

(10%)

0%

10%

20%

30%

40%

50%

60%

2003

Q1

2003

Q2

2003

Q3

2003

Q4

2004

Q1

2004

Q2

2004

Q3

2004

Q4

2005

Q1

2005

Q2

2005

Q3

2005

Q4

2006

Q1

2006

Q2

2006

Q3

2006

Q4

2007

Q1

Indexed to 2003 Q1

Source: NS Financial Statements

900,000

1,400,000

1,900,000

2,400,000

2,900,000

3,400,000

First 12Months

2000 2001 2002 2003 2004 2005 2006 ThruAug.2007NS CSXT

51%

Gro

wth

7% G

rowth

NS v CSX Intermodal VolumesThrough 2006, NS grew about 1.1 million loads since the first 12 months after Conrail. CSX about 142,000 loads

Source: American Railroad Association

Intermodal Volume by Line of Business3Q 2006 – 2Q 2007

International51%

Domestic15%

Premium8%

Triple Crown10%

Truckload16%

NS International Volume

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80

2001 2002 2003 2004 2005 2006 Jan-Sep

Units

(Mill

ions

)

Freight Movement Trends

What’s Driving Intermodal Demand ?

Strong Growth of US TradeConsumer Demand for Cheap ImportsStrong $ Boosting Exports

Increasing Highway Congestion

Changes in Shipping PatternsMore Traffic Going From East to WestIncreased Use of Panama and Suez Canals

Prince Rupert, Canada

NorfolkNew York

Lazaro Cardenas, Mexico

Shanghai, China

Singapore

Savannah

Los Angeles

Current and Future Routes from Asia to the US

Westbound Forwarded Empty -33.4%

Transpacific Exports-2.3%

EC Exports +15.4%

EC Eastbound Empty+19.9%

NS International Volume FlowsJanuary - August 2007 vs. 2006

NS International Traffic with an

East Coast Focus

2006: 43%

2007: 49%

NS International Traffic with a

West Coast Focus

2006: 57%

2007: 51%

Transpacific Imports-7.6%

EC Imports +8.9%

Percent of port related volume, does not include business moving between two non-port locations.

New York

Baltimore

Norfolk

Philadelphia

Buffalo

Columbus

ClevelandDetroit

Louisville

Cincinnati

Pittsburgh

BostonAlbany

Charlotte

Charleston

Savannah

Jacksonville

Miami

AtlantaHuntsville

ChicagoPort of Oakland

Port of Long Beach

Port of Los Angeles

Ports of Seattle and Tacoma

Memphis

Dallas

NS

BNSF

UP

Primary Transcon Intermodal Rail Routes

NS East Coast Port Services

East Coast Port ServicesNew York / New Jersey On Dock Access at Maher, APMT, and

NYCT Marine TerminalsPhiladelphia Near Dock Access

Baltimore Near Dock Access / Drayage Subservice

Norfolk On Dock and Near Dock Access with Drayage SubserviceMaersk APM On Dock Q4 2007

Charleston Near Dock and On Dock

Savannah Garden City On Dock Service

Jacksonville Near Dock and On Dock servicesDames Point: Dec. 2008

Miami Near Dock service

Investment and Development

Annual Capital Investment

0

200

400

600

800

1000

1200

1400

($00

0's)

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007PLAN

Over $850 million is currently or will be invested in Intermodal Capacity

Investment Lags Demand

Locomotive Purchases 1 to 2 years

Locomotive Engineers 3+ years

Passing Siding/Double Track 2 to 7 years

Intermodal Terminal 3 to 12 years

Major PPP 5 to 15 years

Funding OptionsNS Capital Investment

50% of total NS Capital Investment goes to regular maintenanceOver $850 million is currently or will be invested in Intermodal Capacity over the next 3 years

Joint VenturesNS investment in another Railroad’s propertyKCS – Meridian Speedway

Public Private PartnershipsFederalStateLocal (County, City, MPOs)

Intermodal Capital Investment

Meridian Speedway Joint Venture Crescent Corridor

Heartland Corridor

Recently Completed

Expansion

New Facilities

Corridor Capacity Projects

MemphisCharlotte

Atlanta

New Jersey

PhiladelphiaHarrisburg

Chicago

Kansas City

Buffalo

Cincinnati

Columbus

Dallas

Boston

Norfolk

Benefits of Heartland Corridor and GLP - Rickenbacker

Heartland Corridor220 route mile reduction between Norfolk and MidwestProductivity gainsFreight diverted from congested NS routesImprovement in NS’ competitive position with Hampton Roads ports

GLP – RickenbackerFully integrated logistics centerConcentrated mobility between truck, intermodal, railcar and air cargoReduction in drayage expense for customersEast Coast and Transcon Access

The Heartland Corridor Projects: Mainline Clearance Project: $150mmRoanoke, Terminal $22mmPrichard, WV Terminal $19mm

Central Corridor Total $191mmGovernment Funding

Federal $95mmOhio $1mmVirginia $22mmWest Virginia $15mm

Total Government $133mm

Western Freeway Relocation:

Rickenbacker, OH TerminalAssociated – Petersburg TCS Discovery Park TerminalAPM Virginia TerminalCrewe Terminal

Associated Clearance Projects:

Altavista Norfolk

Heartland Corridor

Global Logistics Park – Rickenbacker

(Columbus, OH)GLP – Rickenbacker is NS’ first integrated logistics park

Located 18 miles from Columbus

Over 15,000 acres of existing or planned development

Anchored by NS’ new 300 acre intermodal facility and the Rickenbacker airport

Integrates intermodal, carload and logistics capabilities

Intermodal shipments begin at the end of this year

NS Served Intermodal Facility

NS

BNSF

UP

Columbus Has Network Access

Meridian Speedway• 40 miles of new track completed

• 75 miles of crossties replaced

• 150 miles of ballast and surface work completed

• 45 miles of formerly non-signaled territory converted to centralized train control

BNSF

UP

NS

KCS

MemphisCharlotte

Atlanta

New Jersey

PhiladelphiaHarrisburg

Chicago

Kansas City

Buffalo

Cincinnati

Columbus

Dallas

Boston

Norfolk

Introducing the “I-81 Crescent Corridor”

The Crescent Corridor Represents A Significant Opportunity for Freight Transportation

Long haul intermodal services along I-20, I-40, I-75, I-85 and I-81 Corridors are largely undeveloped

Significant highway congestion along portions of these routes, particularly in Virginia

NS estimates that there are over 1 million divertible truckloads in this corridor

Existing intermodal and motor carrier interest in developing services in this corridor

SummaryIntermodal rail services play a key role in the US transportation network

Continued Intermodal growth will be supported by road congestion, fuel costs, and environmental concerns, and must be accommodated in long term planning

Public-Private Partnerships will grow in importance as an ingredient for a successful transportation system