NORFOLK, VA: April 11, 2016. Norfolk Southern (NS) has issued a statement in response to Canadian Pacific's (CP Rail) withdrawal of its unsolicited acquisition proposal saying the new management team at NS will focus on implementing a strategic plan to streamline operations, reduce expenses and maintain superior customer service levels:
"The Norfolk Southern team has made significant progress and is on track to achieve annual productivity savings of more than US$650 million and an operating ratio below 65 percent by 2020. We are confident the continued execution of our plan will deliver superior value to all of the company's stakeholders by best positioning Norfolk Southern to succeed," it said.
Earlier, the company had awarded 55 companies and five plants its 'Thoroughbred Chemical Safety Award' for shipping 224,660 carloads of hazardous material on the company' s rail network without an accident.
Transported primarily in customer-owned or leased tank cars, the products include crude petroleum, ethanol, fertilizers and industrial chemicals used to manufacture consumer goods.
NS developed the safety award 20 years ago to recognize customers that ship at least 1,000 carloads of hazardous products over the railroad without a single incident for the year.
Alan Shaw, NS executive vice president and chief marketing officer commented: "Through their commitment to safe shipping practices, they ensure the well-being of rail and chemical industry employees, the communities that our companies serve, and the environment. They help us demonstrate daily to our stakeholders that rail is the safe, reliable, and environmentally friendly choice to ship chemical products."
Award winners included ArcelorMittal USA, BASF, Bridger Logistics, Buckeye Partners, Cargill, Chemtrade Logistics, Eastman Chemical, ExxonMobil Chemical, Flint Hill Resources, Marathon Petroleum, Olin Chlor Alkali Logistics, One Earth Energy, Procter & Gamble Renewable Products, and Vopak Terminal Savannah.
NS reported fourth quarter 2015 revenue from its rail operations of US$2.5 billion and a net income of US$361 million. For the full year, revenue totaled US$10.5 billion and net income was US$1.6 billion.
NS chairman, president and CEO James Squires commented: "This year we expect to achieve productivity savings of US$130 million through disciplined cost control and asset utilization."