June 29, 2001
Norfolk Southern Corp. continues
to cut costs by implementing its restructuring plan, part of which
involves selling 12,000 rail cars. To save even more money, the
railroad now is getting rid of various vehicles, from sedans to large
trucks - and in some cases, school buses used by NS'
maintenance-of-way and structures department.
Through "NS 21," the railroad's initiative designed to improve
business processes and customer service, and reduce costs, NS to date
has eliminated 500 vehicles of all types, and plans to sell 500 more
by year-end.
"We asked all departments to look at every vehicle they have and
decide how to use them more efficiently," said Lee Ann Brooks, NS
manager of fleet and material management, in a prepared statement. "In
some cases, the departments decided it was best to dispose of them."
By reducing its fleet size, NS plans to reduce operating and vehicle
maintenance costs, and avoid future capital expenditures. "We
expect to see annual expense reductions of up to $10 million with a
1,000-vehicle reduction in fleet size, and a revised vehicle-use
policy," said Brooks. "In addition to other railroads, we're
benchmarking other companies with large vehicle fleets, such as
utilities and phone companies, to look for best business practices we
can implement."
SOURCE Conrail Railway Technical Society