Norfolk Southern: New intermodal era about removing rail friction

Norfolk Southern is ushering in a new era for its intermodal business, where customer experience becomes the key differentiator, according to Shawn Tureman, vice president of Automotive & Intermodal Marketing. The company's 23-year tenure in the industry reflects a shift from merely matching trucking costs to making rail freight more accessible, predictable, and user-friendly.

In three distinct periods, Norfolk Southern has evolved its approach. The first focused on building an extensive network across the East Coast, adding terminal capacity and improving routes to major freight markets and ports. While this established rail as a viable long-distance alternative, the complexity of long-haul moves with multiple railroads and service handoffs hindered adoption.

The second era, lasting approximately 15 years, shifted focus to customer service, terminal performance, visibility, and consistency. Shippers now evaluate intermodal based on planning predictability, reliability, and ease of management. Norfolk Southern has enhanced terminals, reduced bottlenecks, and invested in infrastructure to support this shift.

The third era, evident in recent growth, emphasizes removing the friction that still constrains rail's competitiveness against trucks. Norfolk Southern's intermodal volume grew 13.7% year-over-year, indicating that rail can win business from highways when service is competitive. Tureman sees a potential combination with Union Pacific to further improve this service, but acknowledges that perfecting the customer experience is an ongoing process.