Norfolk Southern Corp. announced on Sept. 18, 2015 that it is restructuring its Triple Crown Services (TCS) subsidiary to focus on the transportation of automobile parts. The railroad said will work with shippers and logistics partners to convert other business TCS handles into NS’s current intermodal network.
Triple Crown Services specializes in the use of RoadRailer® equipment in dedicated trains. TCS will continue RoadRailer service for automobile parts between Detroit and Kansas City for the foreseeable future but will transition to containers in other NS lanes.
TCS has annual revenues of approximately $350 million and currently has a workforce of approximately 240 employees. NS expects to downsize the workforce by about 200 employees by the end of the year. The affected employees will be eligible for severance pay, job placement assistance and opportunities to apply for positions at NS. 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,” NS said.
“This change is a natural evolution in the business,” said NS Executive Vice President and Chief Marketing Officer Alan H. Shaw. “We want to retain the best of TCS in specific markets, with efficient door-to-door logistics and award-winning customer service.”
TCS President James Newton said the immediate emphasis “is on making the transition smooth for customers, employees, families 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.”
NS will continue to employ more than 2,000 people in Indiana. “Norfolk Southern maintains a strong transportation presence for shippers, receivers, industrial developers, and communities throughout Indiana,” Shaw said. “We are grateful for our relationships in the state and look forward to future opportunities to partner and grow business.”