RSI Logistics, Inc. - Industry Update

CORPORATE COMMUNICATIONS

TO: ALL NS EMPLOYEE OUTLOOK USERS

FROM: CORPORATE COMMUNICATIONS DEPT.

RE: NEWS RELEASE

FOR IMMEDIATE RELEASE

December 12, 2007

FEDERAL BOARD’S DECISION SHORTCHANGES

MICHIGAN RAIL SHIPPERS AND PASSENGERS, NORFOLK SOUTHERN SAYS

NORFOLK, VA – Norfolk Southern Railway Company said that the Surface

Transportation Board’s (STB) Dec. 10, 2007, denial of regulatory

approval for an innovative joint venture involving freight and

passenger rail service over 384 route miles in Michigan and Indiana

represents a lost opportunity for the region’s shippers, passengers

and communities.

Norfolk Southern and Watco Companies had planned jointly to form a

new regional railroad, Michigan Central Railway, to preserve and grow

freight service in the region. Amtrak passenger lines would have

benefited from an extended agreement ensuring continued maintenance

and investment levels on the rail lines between Ypsilanti and

Kalamazoo, Mich.

The transaction was supported by rail freight customers, Amtrak,

short line railroads and a number of state and local officials.

Under the transaction, Norfolk Southern would have contributed to

Michigan Central most of its rail line segments and trackage rights in

Michigan west of Ypsilanti. Those lines carry rail freight service, as

well as much of Michigan’s Amtrak passenger service. Watco would have

contributed several million dollars in cash and locomotives. The new,

independently operated Michigan Central planned to employ up to 118

people and concentrate on reinvesting its revenues in track and

infrastructure.

“It is a sad day for rail transportation in Michigan,” said Wick

Moorman, Norfolk Southern’s chief executive officer. “The proposal was

a creative, farsighted response to the long-term trend of shrinking

rail volumes in the region. It was designed to spur infrastructure

investment and leverage the talents of an experienced short line

operator – all to the benefit of the state, its freight rail customers

and rail passenger service.”

The STB action ends Watco’s planned investment in the lines and

terminates the proposed Amtrak agreement that would have guaranteed

$23 million in maintenance and infrastructure improvements on the main

passenger routes. Norfolk Southern said it will continue to look for

options for the lines. However, because the current traffic on certain

rail segments does not justify additional investment by Norfolk

Southern, some areas may see curtailment of service.

Norfolk Southern Corporation (NYSE: NSC) is one of the nation’s

premier transportation companies. Its Norfolk Southern Railway

subsidiary operates approximately 21,000 route miles in 22 states and

the District of Columbia, serving every major container port in the

eastern United States and providing superior connections to western

rail carriers. Norfolk Southern operates the most extensive

intermodal network in the East and is North America’s largest rail

carrier of metals and automotive products.

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RSI Logistics, Inc. - Industry Update
RSI Logistics Home Page Industry Updates Federal Board's Decision Shortchanges Michigan Rail Shippers & Passengers, Norfolk Southern Says (12/13/2008) CORPORATE COMMUNICATIONS TO: ALL NS EMPLOYEE OUTLOOK USERS FROM: CORPORATE COMMUNICATIONS DEPT. RE: NEWS RELEASE FOR IMMEDIATE RELEASE December 12, 2007 FEDERAL BOARD’S DECISION SHORTCHANGES MICHIGAN RAIL SHIPPERS AND PASSENGERS, NORFOLK SOUTHERN SAYS NORFOLK, VA – Norfolk Southern Railway Company said that the Surface Transportation Board’s (STB) Dec. 10, 2007, denial of regulatory approval for an innovative joint venture involving freight and passenger rail service over 384 route miles in Michigan and Indiana represents a lost opportunity for the region’s shippers, passengers and communities. Norfolk Southern and Watco Companies had planned jointly to form a new regional railroad, Michigan Central Railway, to preserve and grow freight service in the region. Amtrak passenger lines would have benefited from an extended agreement ensuring continued maintenance and investment levels on the rail lines between Ypsilanti and Kalamazoo, Mich. The transaction was supported by rail freight customers, Amtrak, short line railroads and a number of state and local officials. Under the transaction, Norfolk Southern would have contributed to Michigan Central most of its rail line segments and trackage rights in Michigan west of Ypsilanti. Those lines carry rail freight service, as well as much of Michigan’s Amtrak passenger service. Watco would have contributed several million dollars in cash and locomotives. The new, independently operated Michigan Central planned to employ up to 118 people and concentrate on reinvesting its revenues in track and infrastructure. “It is a sad day for rail transportation in Michigan,” said Wick Moorman, Norfolk Southern’s chief executive officer. “The proposal was a creative, farsighted response to the long-term trend of shrinking rail volumes in the region. It was designed to spur infrastructure investment and leverage the talents of an experienced short line operator – all to the benefit of the state, its freight rail customers and rail passenger service.” The STB action ends Watco’s planned investment in the lines and terminates the proposed Amtrak agreement that would have guaranteed $23 million in maintenance and infrastructure improvements on the main passenger routes. Norfolk Southern said it will continue to look for options for the lines. However, because the current traffic on certain rail segments does not justify additional investment by Norfolk Southern, some areas may see curtailment of service. Norfolk Southern Corporation (NYSE: NSC) is one of the nation’s premier transportation companies. Its Norfolk Southern Railway subsidiary operates approximately 21,000 route miles in 22 states and the District of Columbia, serving every major container port in the eastern United States and providing superior connections to western rail carriers. Norfolk Southern operates the most extensive intermodal network in the East and is North America’s largest rail carrier of metals and automotive products.