The Virginian-Pilot - Virginia / March 4, 2007
Auto industry turmoil tests Norfolk Southern’s railroad network
One by one, they arrive at what amounts to a big parking lot in Chesapeake. Ford F-150 pick up s, fresh from the assembly line just more than a mile away in Norfolk, ready to be loaded onto trains and big rigs to travel to dealerships throughout the country.
The trucks appear to be in every color of Ford’s palette: white, blue, black, red and gray. Some with crew cabs, some without. Four-wheel drive seems to be a popular option. Nearly 1,000 of them, all in nice, neat rows.
Three times a day, five days a week, trains from Norfolk Southern Corp. stop by to haul away bi-level rail cars, each stuffed with eight F-150s.
A year ago, the trains pulled away a total of 70 to 80 rail cars daily from the 17-acre yard, which is owned by the railroad.
Now the loads are down to about 30 a day as production at Ford’s Norfolk Assembly Plant winds down, part of a broad retrenchment by Detroit-based automakers in the face of declining sales.
“In this business, you get used to changes,” said Otis Martin, manager of the yard, called the Chesapeake Auto Terminal, as he stood amid the trucks last week.
The auto industry cutbacks can be felt throughout many businesses, from those that supply parts to the plants to those that take away the shiny finished products. Among railroads, which typically carry 70 percent of all new vehicles in addition to moving parts, Norfolk-based Norfolk Southern has the most exposure.
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