From Norfolk Southern Railway: Notice of Cessation of Service Effective December 1, 2015, for All Shipments of Poisonous-Inhalation-Hazard (“PIH”) Commodities and Cessation of Passenger Train Service After December 31, 2015

October 20, 2015

A notice from Norfolk Southern Railway:

October 20, 2015

Notice of Cessation of Service Effective December 1, 2015, for All Shipments of Poisonous-Inhalation-Hazard (“PIH”) CommoditiesWebsite Insert Cars and Financing copy

 

Norfolk Southern Railway Company and its rail operating subsidiaries (“NSR”) will no longer accept shipments of Poisonous-Inhalation-Hazard (“PIH”) commodities, effective Dec. 1, 2015. PIH commodities in transit on Dec. 1, 2015 will be delivered to destination by Dec. 31, 2015.

 

Starting on December 1, 2015, NS will not pull PIH loads or residual cars from a facility on NS and will not accept such cars at interchange.  As to traffic requiring interchange with a connecting railroad, the effective date of this cessation of service shall be accelerated as necessary to comply with any earlier cessation of service date imposed by such connecting railroad. Private car shippers required to have OT-5 authority, which includes storage plans, should make sure that their storage plans are updated.  PIH commodities are those defined in 49 CFR §§ 236.1003, 171.8173.115, and 173.132, and include the STCCs and commodities listed below.

These service changes – effective across the entire NS rail network — are required to comply with federal safety laws that become effective after Dec. 31, 2015, the government’s deadline for installation of PTC. Despite investment of more than $1 billion to date, NS will not meet the deadline.

 NSR is ceasing service related to PIH commodities to prevent it from violating federal safety laws that become effective after December 31, 2015. The December 1, 2015 effective date is designed to allow for all such commodities tendered prior to December 1, 2015 to clear the NSR system before January 1, 2016.

In addition, NSR has notified in writing Amtrak, Virginia Railway Express and Metra that passenger trains will not be permitted to operate on NSR track after December 31, 2015.

Norfolk Southern sincerely regrets the inconvenience that customers, passengers, and commuters will experience and hopes that Congress will act quickly and decisively to allow us to restore full access to our rail network.

Here is the Norfolk Southern press release which followed the notification to customers:

Norfolk Southern announces service changes in response to upcoming Positive Train Control deadline

 NORFOLK, Va., Oct. 20, 2015 – Norfolk Southern Corporation (NYSE: NSC) today said its rail operating subsidiaries will no longer accept shipments of Poisonous-Inhalation-Hazard commodities, effective Dec. 1, 2015.  PIH commodities in transit on Dec. 1 will be delivered to destination by Dec. 31. Additionally, passenger and commuter trains operated by Amtrak, Virginia Railway Express, and Metra will be prohibited by law from operating on NS after Dec. 31.

The cessation of service – effective across the entire NS rail network – is required to comply with federal safety laws that become effective after Dec. 31, the government’s deadline for installation of PTC. Despite investment of nearly $1 billion to date, NS will not meet the deadline.

The status of non-PIH traffic interchanged with other railroads and freight operations on the Northeast Corridor after Dec. 31 is currently under review.

 “We remain hopeful that Congress will grant the railroad industry an extension of the PTC deadline and appreciate the consideration elected officials and regulators are giving this issue,” said James A. Squires, Norfolk Southern chairman, president and CEO. “However, in order to conduct lawful operations on Jan. 1, 2016, and beyond, we must plan ahead to clear affected loaded and empty freight cars from our system.

“Norfolk Southern sincerely regrets the inconvenience that customers, passengers, and commuters will experience,” Squires said. “Our strong hope is that Congress will act quickly and decisively to allow us to restore full access to our rail network.”

 Squires noted that NS is installing PTC on the required lines and equipment as fast as is safe and practical. “PTC is one of the most complex technology implementations in our history,” he said. “It is in everyone’s interest – railroads, customers, suppliers, and communities – that adequate time is devoted to installation, testing, and implementation. Norfolk Southern is committed to getting this right.”

 About Norfolk Southern

Norfolk Southern Corporation (NYSE: NSC) is one of the nation’s premier transportation companies. Its Norfolk Southern Railway Company subsidiary operates approximately 20,000 route miles in 22 states and the District of Columbia, serves every major container port in the eastern United States, and provides efficient connections to other rail carriers. Norfolk Southern operates the most extensive intermodal network in the East and is a major transporter of coal, automotive, and industrial products.

 

Media Inquiries:

 

Frank Brown, 757-629-2710 (fsbrown@nscorp.com)

 

Investor Inquiries:

 

Katie Cook, 757-629-2861 (InvestorRelations@nscorp.com)

 

http://www.norfolksouthern.com

 

 

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