Norfolk Southern To Consolidate 2 Divisions As Part Of Ongoing Effort To 'Enhance Operating Efficiencies'

Norfolk Southern Corp. NSC announced on Tuesday a new plan to consolidate its Virginia and Pocahontas divisions into 1 unit. The new unit will consolidate into the Pocahontas Division and consist of 2,581 route miles. Norfolk noted that combining the 2 divisions into 1 will improve service by placing most of the company's coal routes under the operating authority of a single division. Norfolk added that the announcement follows other recent strategic initiatives (such as reducing its 3 corporate office locations to 2) as part of an overall strategy to "enhance operating efficencies and support long-term growth." "Coal mined from the Appalachian Basin has long served as a vital, low-cost source of energy to power America, and Norfolk Southern remains committed to providing top-notch service to our valuable coal customers," Mike Wheeler, senior vice president of operations said. "At the same time, the railroad is nimble and adapts to changing market conditions. Our strategic plan positions us to meet the needs of current customers while creating efficiencies and focusing resources on infrastructure and markets that support continued growth." Shares of Norfolk Southern were little changed following the announcement but are lower by more than 26 percent over the past year.