Monday, January 15, 2024

"Customer Service Beyond the Track:" Norfolk Southern sees $3.1 billion in customer expansion along its railway network in 2023.

 

As Scout Motors announced its $2 billion investment in Richland County, South Carolina, it was also tapping into Norfolk Southern's industrial development and automotive logistics expertise. Scout Motors, which is owned by VolksWagen, is reviving the 1960 International Harvester Scout brand, but as an electric vehicle (EV), off road, fun for the family camping trip vehicle (Sebastian Blanco, 13 March 2023). Scout Motors plans to open its state of the art automotive manufacturing and logistics facility is 2026. Norfolk Southern served as an early planning partner for Scout Motors, according to Vice President of Growth, Cody Thacker:

"Norfolk Southern is an important link in the supply chain for Scout Motors that served as a valuable early planning partner and collaborator. Incorporating inbound and outbound rail service will allow Scout Motors to sustainably handle rapid production growth, to remain sensitive to the communities surrounding the plant, and to deliver hundreds of thousands of Scout trucks and SUVs to consumers across America." qtd. in PR Newswire, Januaray, 2024

Other EV automotive manufacturers that have built or expanded their facilities on NS' rail network include General Motors and Samsung SDI, which has invested $3 billion in New Carlisle, Indiana to make new battery cells for electric vehicles. Albemarle and it's $1.3 billion investment in its facility in Chester County, S.C to build a facility to manufacture energy storage applications for EVs.

Other EV automotive manufacturers that have built or expanded their facilities on NS' rail network include General Motors and Samsung SDI, which has invested $3 billion in New Carlisle, Indiana to make new battery cells for electric vehicles. Albemarle and it's $1.3 billion investment in its facility in Chester County, S.C to build a facility to manufacture energy storage applications for EVs.

Norfolk Southern saw growth in other market areas, including agriculture, metals, construction, and more...like pet products. Anchor Ingredients announced in June 2023 that  it is opening a $40 million transload and ingredient processing plant in Richmond, Indiana. The new facility demonstrates Anchor's commitment to bring a reliable source high quality, premium ingredients to a growing network of pet food manufacturers in the region. Anchor's new, state of the art facility will expand rail infrastructure within Midwest Industrial Park to meet Anchor's commitment to meeting the evolving needs of pet food industry customers. Norfolk Southern probably has its hand in the expansion of the rail infrastructure in the area and is working to meet the logistics and reliability needs of Anchor Ingredients and its customers. NS is best in class!

Other companies that stated or expanding their rail service with Norfolk Southern in 2023, according to NS' website:

  1. Pure Cycle, as the company invests $363 million in Lawrence County, Ohio for a new polypropylene recycling plant.
  2. Idaho Forest Group, LLC., as the company invests $120 million in Lamar County, Mississippi for a new lumber mill
  3. International Paper, as the company invests $100 million in Chester County, Pennsylvania for a new corrugated packaging plant.
  4. Church & Dwight, as the company invests $50 million in Seneca County, Ohio for an expansion to their current cat litter production plant.
  5. Jasper Forest Products, as the company invests $45 million in Walker County, Alabama to expand their lumber facility.
  6. Hollingshead Cement, a materials division of SRM Concrete, as the company invests $9.5 million in Delaware County, Indiana for a new cement distribution terminal. 
  7. Home Depot, as the company invests $8.5 million in Mecklenburg County, North Carolina for a new rail-served lumber distribution facility.

In 2023, Norfolk Southern added 41 rail serviced industrial sites to its internet database, NSites.  June 2023 saw two noted developments.

The first is the lease agreement between Norfolk, VA based, Fairwinds Landing and Norfolk Southern to "create a world-class maritime operations and logistics center that supports the offshore wind, defense, and transportation industries" with a $39 million grand from the U.S. Department of Transportation. 

The second development was NS' sale of 16.7 acres to Colonial Terminals for the development of breakbulk infrastructure and will be capable of handling any breakbulk cargo. The facility will support a new wide-span berth capable and will allow more than a million tons of throughput. The new facility located along the Savannah River in Georgia will be directly served by Norfolk Southern.

Projects in 2023, Growth in 2024. The broad-based economic and industrial projects Norfolk Southern engaged in with its customers in 2023 is "setting the stage for growth in 2024"said Executive Vice President and Chief Marketing Officer Ed Elkins: 

"Our 2023 project list, and 2024 pipeline, reflect our ability to serve a diverse customer portfolio with our expanding supply chain offerings. We're making further productivity enhancements – demonstrating to our existing and prospective customers that Norfolk Southern is a safe, reliable, and efficient railroad, and a partner for growth."

 The idea at NS is that engaging in what appear to be a graphic demonstration of what NS can do for its customers in beneficial  infrastructure projects and "unlocking the full value of rail to our  nation's supply chain." It is what Norfolk Southern's  Vice President of Business Development and Real Estate Kathleen Smith called "customer service (that) extends beyond the track."

What this means to You, Dear Reader. If you are a pet parent or are interested in electric vehicles, the involvement of Norfolk Southern in partnerships with Anchor Ingredients and Scout Motors means safe and reliable transportation for the products these partners need, as well as the transportation of the partners' finished products. 

If you are a pet parent and you feed your fur baby Blue Buffalo brand foods, (as I do) is now expanding its $200 million facility at the same Midwest Industrial Park where Anchor will have its processing facilities and become the preferred ingredient provider of the world's largest pet food brands. It's quite likely that in the near future Norfolk Southern will have transported your furbaby's Blue Buffalo favor,  Tastefuls Turkey and Chicken. If you drive your Scout EV to the store to pick up your furbaby's  favorite food, your Scout was made in a facility where Scout Motors sought Norfolk Southern and its automotive logistic expertise.  NS helped your EV's manufacturer put in place the rail infrastructure to receive those parts in your vehicle, as well as to transport your finished vehicle out of the facility.  It's customer service that goes well beyond the track.


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