NORFOLK, Va. (AP) — Norfolk Southern railroad expects to become significantly more efficient by 2021, and operate with 3,000 fewer employees and 500 fewer locomotives.
The railroad detailed its plan to continue improving operations Monday at an investor conference.
Norfolk Southern has been working to reduce costs and get more efficient since 2015, but other railroads, particularly eastern rival CSX, have cut expenses and overhauled operations more aggressively over the past several years.
Norfolk Southern plans to apply some of the same principles CSX has used successfully to operate its railroad on a tighter schedule with fewer cars and locomotives.
Edward Jones analyst Dan Sherman says he thinks the stock price already reflects Norfolk Southern’s plans. Sherman says Norfolk Southern’s success will depend on how well they implement the plan.