Norfolk Southern Corporation (NYSE: NSC) is a leading freight railroad company headquartered in Atlanta, Georgia. With a heritage dating back to 1827, the company plays a pivotal role in the U.S. supply chain, safely moving raw materials, intermediate goods, and finished products across 22 states and the District of Columbia. Norfolk Southern operates the most extensive intermodal network in the eastern half of the United States and is instrumental in reducing carbon emissions by approximately 15 million tons annually by shifting freight to rail transport.
Company Overview
- Founded: July 23, 1980 (Incorporated)
- Headquarters: 650 West Peachtree Street NW, Atlanta, Georgia, 30308-1925
- Stock Exchange: NYSE: NSC
- Employees (2024): Approx. 20,200
- Operational Network: 19,200 route miles across 22 states and D.C.
- Key Services: Freight transportation, intermodal services, coal transportation
- Notable Initiative: Leading rail carrier in safety improvements and intermodal efficiency
- Environmental Impact: Helps customers avoid ~15 million tons of CO2 emissions annually
Business Segments and Revenue Breakdown
Norfolk Southern’s railway operating revenues totaled $12.1 billion in 2024. The revenue is derived from three main business segments:
1. Merchandise – 62% of Total Revenue
- Carloads: 2.3 million
- Categories:
- Agriculture, forest, and consumer products (e.g., soybeans, wheat, food oils)
- Chemicals (e.g., petroleum, chlorine, plastics)
- Metals and construction (e.g., steel, cement, military equipment)
- Automotive (finished vehicles and parts)
2. Intermodal – 25% of Total Revenue
- Units Handled: 4.1 million
- Clients: Intermodal marketing companies, international shipping lines, premium customers
3. Coal – 13% of Total Revenue
- Volume: 76.7 million tons (0.7 million carloads)
- Market: Power generation, export, domestic metallurgical and industrial markets
- Facilities: Terminals at Ohio River, Lamberts Point, Port of Baltimore, Lake Erie
Product and Service Offerings
Norfolk Southern delivers approximately 7 million carloads annually. Its key offerings span across:
- Agricultural Commodities: Corn, soybeans, wheat, food oils, livestock feed
- Chemical Transportation: Crude oil, chlorine, industrial chemicals
- Automotive Logistics: Finished vehicles and auto parts delivery
- Intermodal Solutions: Container and trailer transport across domestic/international markets
- Coal Delivery: To electric utilities, industrial users, and export markets
- Steel and Construction: Cement, aggregates, scrap metal, U.S. military freight
These services ensure seamless transport between manufacturers, distributors, and ports.
Company History
Norfolk Southern Corporation traces its roots to the South Carolina Canal and Rail Road Company, which began operations in 1827. Over the next century, a series of mergers and acquisitions shaped the evolution of what would become one of the most prominent rail networks in the United States. In 1980, the Norfolk Southern Corporation was officially incorporated under the laws of Virginia.
A key milestone came with the acquisition of the Southern Railway and Norfolk & Western Railway, forming the core of Norfolk Southern’s modern operations. Through continued expansion, strategic acquisitions, and a consistent focus on safety and efficiency, the company has grown to become a vital player in America’s transportation infrastructure.
In March 2024, Norfolk Southern completed the acquisition of a 337-mile railway line from Cincinnati, Ohio to Chattanooga, Tennessee from the Cincinnati Southern Railway. This acquisition bolstered its owned infrastructure and reduced reliance on lease agreements.
Today, Norfolk Southern stands as a technology-enabled, safety-first freight railroad that plays a critical role in supporting the manufacturing, agriculture, and energy sectors throughout the eastern United States.
Geographic Presence and Revenue Distribution
Norfolk Southern’s geographic footprint spans:
- 22 U.S. States
- District of Columbia
- Connections to every major container port on the Atlantic Coast
- Access to major Gulf Coast and Great Lakes ports
Key Corridors:
- New York City 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
This extensive footprint provides access to:
- Major U.S. manufacturing centers
- Power generation plants
- Industrial clusters
- Global trade via ports
The company’s intermodal network is the largest in the eastern U.S., enabling efficient, multi-modal transportation across domestic and international markets. Norfolk Southern’s coal network serves 18 coal-fired power plants and connects to inland and seaborne export facilities.
Revenue is not broken down by region explicitly in the annual report; however, given the extensive coverage in the eastern half of the country, it is inferred that the majority of revenues are derived from industrial and intermodal activity concentrated in this region.
Consolidated Financial Statements (2024)
Consolidated Income Statement (in millions)
| Description | 2024 | 2023 | 2022 |
|---|---|---|---|
| Railway Operating Revenues | 12,123 | 12,156 | 12,745 |
| Income from Railway Operations (adj.) | 4,146 | 3,967 | 4,809 |
| Net Income (adjusted) | 2,684 | 2,673 | 3,270 |
| Earnings per Share – Diluted (adjusted) | 11.85 | 11.74 | 13.88 |
| Dividends per Share | 5.40 | 5.40 | 4.96 |
| Dividend Payout Ratio (adjusted) | 45% | 46% | 36% |
Consolidated Balance Sheet (in millions)
| Description | 2024 | 2023 | 2022 |
| Total Assets | 43,682 | 41,652 | 38,885 |
| Total Debt | 17,206 | 17,179 | 15,182 |
| Shareholders’ Equity | 14,306 | 12,781 | 12,733 |
| Shares Outstanding (mil) | 226.3 | 225.7 | 228.1 |
Consolidated Cash Flow (in millions)
| Description | 2024 | 2023 | 2022 |
| Net Cash from Operating Activities | 4,052 | 3,179 | 4,222 |
| Property Additions | 2,381 | 2,327 | 1,948 |
| Acquisition of CSR Assets | 1,643 | 22 | – |
| Free Cash Flow | 1,671 | 852 | 2,274 |
Subsidiaries, Wholly-Owned Subsidiaries, and Associates
Norfolk Southern Corporation operates its core business primarily through its principal wholly owned subsidiary:
🚆 Norfolk Southern Railway Company (NSR)
- Status: Wholly Owned Subsidiary
- Function: Operates the freight rail transportation network over 19,200 route miles.
- Contribution: Nearly 100% of operating revenue and income stem from NSR’s operations.
🏢 Other Subsidiaries and Affiliates (Representative List)
| Subsidiary Name | Ownership Status | Core Function |
|---|---|---|
| Thoroughbred Mechanical Services | Wholly Owned | Equipment services, locomotive component refurbishment |
| Thoroughbred Technology and Telecom | Wholly Owned | Communication infrastructure and fiber optics |
| Lambert’s Point Docks, Inc. | Wholly Owned | Coal transloading and export terminal at Norfolk, VA |
| Pocahontas Land Corporation | Wholly Owned | Real estate management of former rail properties |
| TransWorks Inc. | Wholly Owned | Logistics and freight brokerage services |
| Cincinnati Southern Railway Assets | Acquired in 2024 | Infrastructure ownership along key Ohio-Tennessee corridor |
These subsidiaries help diversify and support Norfolk Southern’s rail operations by managing specialized logistics, technology, and land development functions. NS primarily focuses on freight rail transport; therefore, the financial impact of other subsidiaries is operationally supportive but not segmented in percentage form within the report.
No listed associates (entities with partial ownership or joint ventures) were disclosed in the report for FY2024.
Physical Properties and Infrastructure
Norfolk Southern’s operations are underpinned by a vast and capital-intensive physical infrastructure that supports safe and efficient rail service across the eastern United States.
Track Infrastructure
| Category | Miles (as of Dec 31, 2024) |
|---|---|
| Route Miles Operated | 19,154 |
| Second and Other Main Track | 4,561 |
| Passing Tracks, Crossovers, Turnouts | 2,356 |
| Way and Yard Switching | 8,961 |
| Total Track Miles Operated | 35,032 |
- Includes 14,629 miles of track owned by Norfolk Southern.
- 4,525 miles operated under lease, trackage rights, or contracts.
- Notable acquisition: 337-mile corridor from Cincinnati to Chattanooga completed in 2024.
Intermodal and Terminal Facilities
- Intermodal Terminals: Norfolk Southern operates numerous terminals across its network, supporting both domestic and international intermodal containers.
- Coal Terminals: Major facilities include:
- Lambert’s Point Docks in Norfolk, VA
- Port of Baltimore
- Terminals along the Ohio River and Lake Erie
Equipment
| Equipment Type | Owned | Leased | Total |
| Locomotives | 3,245 | – | 3,245 |
| Freight Cars | 31,891 | 5,232 | 37,123 |
| Intermodal Chassis | 39,037 | – | 39,037 |
| Intermodal Containers | 17,443 | – | 17,443 |
- Locomotives have an average age of 29.6 years.
- Over 4 million tons of freight car capacity.
Dispatch and Signal Systems
- Norfolk Southern dispatches 16,200 route miles, of which 11,300 miles are signalized:
- Centralized Traffic Control (CTC): 8,500 miles (7,600 wireless)
- Automatic Block Signals: 2,800 miles
Facilities and Shops
- Mechanical Shops: Repair and maintenance centers for locomotives and railcars.
- Track and Signal Shops: Dedicated facilities for infrastructure upkeep.
- Corporate Headquarters: Atlanta, Georgia
- Regional Offices, Yard Control Towers, and Safety Training Centers
Norfolk Southern’s infrastructure is central to its operational capabilities, providing the physical foundation for safe, reliable, and efficient freight movement.
Board of Directors (As of February 1, 2025)
Norfolk Southern’s Board of Directors includes individuals with deep expertise across transportation, finance, technology, governance, safety, and public policy.
| Name | Position/Role | Independent | Key Committees |
|---|---|---|---|
| Richard H. Anderson | Board Chair | Yes | Executive, Finance & Risk, Human Capital (Chair) |
| Philip S. Davidson | Director | Yes | Finance & Risk, Safety |
| William Clyburn Jr. | Director | Yes | Governance & Nominating, Safety |
| Francesca A. DeBiase | Director | Yes | Audit, Executive, Governance & Nominating (Chair) |
| Marcela E. Donadio | Director | Yes | Audit (Chair), Executive, Governance & Nominating |
| Sameh Fahmy | Director | Yes | Audit, Safety |
| Mark R. George | President & CEO | No | Executive |
| John C. Huffard Jr. | Director | Yes | Finance & Risk, Human Capital |
| Christopher T. Jones | Director | Yes | Audit, Executive, Safety (Chair) |
| Thomas C. Kelleher | Director | Yes | Executive, Finance & Risk (Chair), Human Capital |
| Mary Kathryn “Heidi” Heitkamp | Director | Yes | Governance & Nominating, Safety |
| Claude Mongeau | Director | Yes | Executive (Chair) |
| Lori J. Ryerkerk | Director | Yes | Governance & Nominating, Human Capital |
| Gilbert H. Lamphere | Director | Yes | Finance & Risk, Human Capital |
This diverse and experienced board brings a blend of private sector leadership, public service, and railroad-specific experience to guide the company strategically.
Founders and Early Leadership
Norfolk Southern’s historical foundation is rooted in several key railroads that formed its predecessor companies. The modern entity was established on July 23, 1980, through the consolidation of Southern Railway and Norfolk and Western Railway. While there is no single founder in the modern context, the early visionaries and executives of these predecessor companies include:
- William Mahone – Confederate general, civil engineer, and influential figure in Norfolk & Western Railway’s development.
- Samuel Spencer – First president of Southern Railway, regarded as a founder of the Southern system.
- John M. Franklin – Key figure in the expansion of Southern Railway’s network during the early 20th century.
These leaders laid the groundwork for what would become a unified Class I railroad operating the most extensive intermodal network in the eastern U.S. Today’s leadership continues this legacy through strategic investments and operational excellence.
Brands and Service Lines
Norfolk Southern does not operate under multiple distinct consumer-facing brands in the traditional sense. Instead, it delivers its value through a unified identity anchored in its primary rail operations and strategic service lines.
Primary Operating Identity:
- Norfolk Southern Railway – The company’s central and unifying brand encompassing all Class I freight operations.
Service Sub-Brands and Divisions
While Norfolk Southern does not segment revenue by brand, several internal and service-specific identifiers are used in its operations:
| Division/Sub-brand | Function |
|---|---|
| Thoroughbred Mechanical Services | Locomotive overhaul and parts refurbishment |
| Thoroughbred Technology and Telecommunications (TTCI) | Fiber optic infrastructure, data, and rail communications |
| Thoroughbred Yard Enterprise Solutions | Yard operations management, scheduling, and optimization |
| NS Intermodal | Container and trailer handling for domestic and international trade |
| NS Automotive | Supply chain solutions for the automotive manufacturing sector |
Corporate Branding and Reputation
- The “Thoroughbred” brand—symbolized by the black horse logo—is a hallmark of reliability, speed, and strength.
- Norfolk Southern’s consistent focus on safety, technology innovation, and sustainability reinforces its value to shippers and investors.
Although Norfolk Southern operates under a unified brand umbrella, the functionality and market-specific services delivered through these sub-divisions contribute substantially to its business performance.
Investments and Passive Holdings
Norfolk Southern holds targeted investments in support of its infrastructure and sustainability goals. The company does not operate as a holding company but does engage in:
Active Capital Investments (2024)
| Category | Value (USD millions) |
| Property and Infrastructure Additions | 2,381 |
| Acquisition of CSR Railway Assets | 1,643 |
| Technology, Safety, and Efficiency Projects | 650 |
These investments are focused on long-term value creation, network resiliency, and modernization of assets.
Future Investment Plans
The company has outlined a strategic plan focused on enhancing operational safety, efficiency, and capacity through:
- Ongoing Infrastructure Renewal: Targeted capital expenditure on bridges, tunnels, and track.
- Intermodal Expansion: Increasing terminal automation, expanding high-volume corridors.
- Fleet Modernization: Upgrading locomotives and freight cars to reduce emissions.
- Technology Integration: Use of AI and predictive analytics for network optimization.
- Sustainability Commitments: Carbon reduction goals and investment in energy-efficient technologies.
Norfolk Southern anticipates maintaining annual capital spending between $2.5 billion to $3 billion to support these priorities.
What does Norfolk Southern Corporation do?
Norfolk Southern Corporation is a leading freight railroad company operating over 19,200 route miles across 22 U.S. states and the District of Columbia. It transports goods like coal, chemicals, agricultural products, automotive parts, and containers through its extensive rail and intermodal network.
What are the main business segments of Norfolk Southern?
Norfolk Southern has three primary business segments: Merchandise (62% of revenue), Intermodal (25%), and Coal (13%). These segments cover transportation of various commodities, container logistics, and energy-related freight.
Where is Norfolk Southern headquartered?
Norfolk Southern is headquartered at 650 West Peachtree Street NW, Atlanta, Georgia, 30308-1925.
Who owns Norfolk Southern Corporation?
Norfolk Southern is a publicly traded company listed on the NYSE under the ticker NSC. Major institutional shareholders include The Vanguard Group, BlackRock, and State Street. There is no parent company or controlling shareholder.
What is the annual revenue of Norfolk Southern?
In 2024, Norfolk Southern reported $12.1 billion in railway operating revenue.
What are Norfolk Southern’s future investment plans?
Norfolk Southern plans to invest $2.5 to $3 billion annually in infrastructure renewal, intermodal expansion, fleet modernization, technology integration, and sustainability initiatives to strengthen its freight network.
What are Norfolk Southern’s major physical properties?
The company owns 14,629 miles of track and operates over 35,000 total track miles. It also maintains major intermodal and coal terminals, mechanical shops, yards, and its corporate headquarters in Atlanta.
Who are the key board members of Norfolk Southern?
Key members include Richard H. Anderson (Chair), Mark R. George (President & CEO), Francesca A. DeBiase, Marcela E. Donadio, Sameh Fahmy, and Claude Mongeau, among others.
