Q: What challenges do companies face when incorporating rail into their site plans, and how does Norfolk Southern help mitigate those challenges?
A: One of the biggest challenges is not considering rail early enough in the site planning process. Unlike trucks, which can operate with some flexibility, rail infrastructure needs to be integrated from the outset to ensure the site can accommodate it efficiently. We have a dedicated team that helps companies design their sites to optimize rail service.
Q: What advantages does rail offer over other transportation modes when it comes to site selection for industrial facilities?
A: A primary advantage remains its ability to transport heavyweight materials over long distances at a low cost. Additionally, rail is about seven times more sustainable than trucking in terms of carbon emissions, which is increasingly important to companies today. These advantages, plus the ability to offer truck-like service with the efficiency of rail in intermodal and transloading, make rail a truly end-to-end option for shipment needs.
Q: How has the role of rail in industrial process development evolved in recent years, particularly in relation to manufacturing and distribution trends?
A: We've seen increased interest in rail due to sustainability concerns and ongoing efforts to reduce supply chain costs. Rail offers new solutions for manufacturers, such as direct on-site rail, transloading, and intermodal options, which all help streamline the supply chain.
Q: Could you elaborate on the sustainability aspects of rail? Are there any new innovations or technologies we should be aware of? And what is Norfolk Southern doing in this area?
A: We have a Chief Sustainability Officer who works with customers to educate them on supply chain sustainability. Norfolk Southern offers carbon tax credits for customers who integrate rail into their operations, and during the site selection process, we help companies identify carbon emission savings using our carbon calculator, which compares emissions from rail versus truck based on location. This has become a significant factor in site selection decisions.
Q: Could you provide an example of a successful industrial project where Norfolk Southern played a key role?
A: One example is our work with Scout Motors in 2023. We partnered closely with them during the site selection process, focusing on logistics and sustainability, which were crucial for them. We’ve also collaborated with several forest and lumber companies and have played a key role in other large-scale industrial projects.
Q: How is Norfolk Southern adapting to future technological needs, particularly around automation and smart technologies?
A: We are focused on safety innovations like rail inspection portals that capture thousands of images per railcar to detect potential issues before they cause disruptions. We're also part of Rail Pulse, a company we helped found that uses sensors to track the location and health of railcars, helping customers manage their supply chains more effectively. And, we’re working to make our customizable site selection tool, NSites, even more user-friendly for those looking to find available rail-served, shovel-ready sites.
Q: How does Norfolk Southern collaborate with state and local governments or economic development organizations?
A: We work closely with state and local partners to support industrial development from site readiness through the final site selection. We’ve even partnered with communities to protect rail-served sites ensuring they remain available for future industrial projects. We also provide thriving community grants to support workforce initiatives in areas we serve.
Q: What emerging sectors do you see driving demand for rail services in the future, and how is Norfolk Southern preparing for this growth?
A: In our current pipeline of about 450 projects, we see strong growth in metals, construction, chemicals, and renewable fuels, as well as in the agricultural, forest, and consumer goods sectors. These are all sectors where rail has traditionally been strong, and we expect that to continue.
Q: Lastly, what would you like to say directly to manufacturing executives about the importance of rail?
A: Don’t overlook rail in your supply chain planning due to the perception that it’s complex or costly. Whether through direct rail, transloading, or intermodal options, any manufacturer can benefit from rail. We can help you develop the right solution for your needs.
