Lower traffic, bid to drive efficiencies prompt NS to reduce Knoxville operations
Written by Jenifer Nunez, assistant editor
Norfolk Southern will reduce train operations at its Knoxville, Tenn., rail yard, effective May 1, which is in response to lower traffic volumes and is consistent with the company's ongoing implementation of its strategic plan to enhance operating efficiencies, reduce costs, drive profitability and support long-term growth.
NS remains on track to achieve its previously announced annual expense savings of more than $650 million and an operating ratio below 65 percent by 2020.
NS plans to idle switching operations at the rail yard. As part of the change in operations, train traffic will decrease at the yard, reducing the need for personnel and infrastructure associated with train operations and maintenance activities. The Knoxville terminal will continue to serve as a hub for through-train operations and provide safe, reliable service to local customers and NS has developed an operating plan to minimize any customer impact.
Knoxville will continue to serve as headquarters for the company’s Central Division, which includes 1,100 track miles primarily in Tennessee and Kentucky. Although approximately 135 positions will be impacted by the reduction of operations at the yard, nearly 300 employees in Knoxville will continue to support division operations and manage yard traffic. NS will assist impacted employees by offering them opportunities to fill job vacancies as they become available across the system.
NS currently employs more than 1,570 people across Tennessee with nearly 850 miles of track across the state, intermodal terminals in Memphis and a major rail classification yard and locomotive shop in Chattanooga.
