Norfolk Southern to restructure Triple Crown Service

Norfolk Southern Corp. is restructuring its Triple Crown Services (TCS) subsidiary to focus on automobile parts, and will work with shippers and logistics partners to convert other TCS business into NS' existing intermodal network, the company announced today.

TCS, which uses RoadRailer® equipment in dedicated trains, will continue RoadRailer service for automobile parts between Detroit and Kansas City, Mo., for the foreseeable future but will transition to containers in other NS lanes, NS officials said in a press release.

"This change is a natural evolution in the business," said Alan Shaw, NS executive vice president and chief marketing officer. "We want to retain the best of TCS in specific markets, with efficient door-to-door logistics and award-winning customer service."

NS expects to downsize the TCS workforce by about 200 employees by year’s end. Currently, TCS employs about 240. The affected workers will be eligible for severance pay, job placement assistance and opportunities to apply for other positions at NS, railroad officials said.

TCS President James Newton said the company will emphasize a smooth transition for customers, employees and trucking partners.

"We are proud of the accomplishments of Triple Crown and the service we have provided to our customers, and we are confident that TCS and Norfolk Southern will continue to provide the level of service our customers expect," he said.

As a result of the restructuring, NS will recognize accelerated depreciation and other costs totaling approximately $65 million in the second half of the year, roughly equal between the third and fourth quarters. The restructuring is expected to be modestly accretive to earnings beginning in 2016.

TCS generates annual revenue of $350 million.