quarterly reports on Form 10-Q, current reports on Form 8-K, and all amendments to those reports as soon as

reasonably practicable after such material is electronically filed with or furnished to the U.S. Securities and

Exchange Commission (SEC). In addition, the following documents are available on our website and in print to any

shareholder who requests them:

    • Norfolk Southern Corporation Bylaws

    • Charters of the Committees of the Board of Directors

    • Corporate Governance Guidelines

    • Categorical Independence Standards

    • The Thoroughbred Code of Ethics

    • Code of Ethical Conduct for Senior Financial Officers

 

 

 

 

                                                         K3

 

RAILROAD OPERATIONS – At December 31, 2023, we operated approximately 19,100 route miles in 22 states

and the District of Columbia.

 

Our system reaches many manufacturing plants, electric generating facilities, mines, distribution centers, transload

facilities, and other businesses located in our service area.

 

 

 

 

Corridors with heaviest freight volume:

       • New York City area to Chicago (via Allentown and Pittsburgh)

       • Chicago to Macon (via Cincinnati, Chattanooga, and Atlanta)

       • Central Ohio to Norfolk (via Columbus and Roanoke)

       • Cleveland to Kansas City

       • Birmingham to Meridian

       • Memphis to Chattanooga

 

 

 

 

                                                         K4

 

The miles operated, which include major leased lines between Cincinnati and Chattanooga, and an exclusive

operating agreement for trackage rights over property owned by North Carolina Railroad Company, were as

follows:

 

                                                                  Mileage Operated at December 31, 2023

                                                                     Second      Passing

                                                                       and       Track,

                                                                      Other    Crossovers Way and

                                                       Route          Main         and        Yard

                                                       Miles          Track     Turnouts Switching               Total

 

Owned                                                    14,312          2,676          1,953           8,142     27,083

Operated under lease, contract or trackage

  rights                                                  4,825          1,889            406            841       7,961

 

   Total                                                 19,137          4,565          2,359           8,983     35,044

 

In 2022, we entered into an asset purchase and sale agreement with the Board of Trustees of the Cincinnati Southern

Railway (CSR) to purchase 337 miles of railway line that extends from Cincinnati, Ohio to Chattanooga, Tennessee

that we currently operate under a lease. The transaction is scheduled to close on March 15, 2024. See further

discussion in Item 7 “Management's Discussion and Analysis of Financial Condition and Results of Operations” and

Item 8 “Notes to Consolidated Financial Statements.”

 

We operate freight service over lines with significant ongoing Amtrak and commuter passenger operations and

conduct freight operations over trackage owned or leased by Amtrak, New Jersey Transit, Southeastern

Pennsylvania Transportation Authority, Metro-North Commuter Railroad Company, and Michigan Department of

Transportation.

 

The following table sets forth certain statistics relating to our operations for the past five years:

 

                                                                          Years ended December 31,

                                                             2023         2022      2021     2020                2019

 

Revenue ton miles (billions)                            176                 179          178          164           194

Revenue per thousand revenue ton miles              $ 69.05             $ 71.35      $ 62.56      $ 59.67       $ 58.21

Revenue ton miles (thousands) per railroad employee   8,719               9,513        9,694        8,191         7,939

Ratio of railway operating expenses to railway

  operating revenues (railway operating ratio)        76.5%               62.3%        60.1%        69.3%        64.7%

 

RAILWAY OPERATING REVENUES – Total railway operating revenues were $12.2 billion in 2023.

Following is an overview of our three commodity groups. See the discussion of merchandise revenues by major

commodity group, intermodal revenues, and coal revenues and tonnage in Item 7 “Management’s Discussion and

Analysis of Financial Condition and Results of Operations.”

 

MERCHANDISE – Our merchandise commodity group is composed of four groupings:

  • Agriculture, forest and consumer products includes soybeans, wheat, corn, fertilizer, livestock and poultry

    feed, food products, food oils, flour, sweeteners, ethanol, lumber and wood products, pulp board and paper

    products, wood fibers, wood pulp, beverages, and canned goods.

  • Chemicals includes sulfur and related chemicals, petroleum products (including crude oil), chlorine and

    bleaching compounds, plastics, rubber, industrial chemicals, chemical wastes, sand, and natural gas liquids.

 

 

 

                                                            K5

 

    •   Metals and construction includes steel, aluminum products, machinery, scrap metals, cement, aggregates,

        minerals, clay, transportation equipment, and items for the U.S. military.

    •   Automotive includes finished motor vehicles and automotive parts.

 

In 2023, we handled 2.2 million merchandise carloads, which accounted for 61% of our total railway operating

revenues.

 

INTERMODAL – Our intermodal commodity group consists of shipments moving in domestic and international

containers and trailers. These shipments are handled on behalf of intermodal marketing companies, international

steamship lines, premium customers and asset-owning companies. In 2023, we handled 3.8 million intermodal

units, which accounted for 25% of our total railway operating revenues.

 

COAL – Coal revenues accounted for 14% of our total railway operating revenues in 2023. We handled 76 million

tons, or 0.7 million carloads, most of which originated on our lines from major eastern coal basins, with the balance

from major western coal basins received via the Memphis and Chicago gateways. Our coal franchise supports the

electric generation market, directly serving approximately 30 coal-fired power plants, as well as the export,

domestic metallurgical and industrial markets, primarily through direct rail and river, lake, and coastal facilities,

including various terminals on the Ohio River, at Lamberts Point in Norfolk, Virginia, at the Port of Baltimore, and

on Lake Erie.

 

FREIGHT RATES – Our predominant pricing mechanisms, private contracts and exempt price quotes, are not

subject to regulation. In general, market forces are the primary determinant of rail service prices.