In the report, CEO Jim Squires notes that the company finished the year “a stronger, faster, lower-cost, and more profitable railroad.” NS’ strategic plan has met or exceeded the company’s targets to lower operating costs and increase profitability.
In 2016, the company:
- Achieved an all-time best operating ratio of 68.9 percent;
- Reduced expenses in operations to generate savings of $250 million;
- Increased income from railway operations and net income by 7 percent each; and
- Rationalized 1,000 miles of secondary rail lines.
The company has invested in strategic capital projects while exercising disciplined cost control, Squires noted. In addition, efforts to improve locomotive fuel-efficiency, reliability, and emissions reduction continued as part of the company’s sustainability and business strategy. He also stated that the company is “more focused than ever on services that will help convert freight from highway to rail.”
“We are changing the way we do business in order to meet and exceed our customers’ expectations and to drive superior value creation for shareholders,” said Squires.