Norfolk Southern Corp. will modify its Triple Crown Services (TCS) subsidiary to focus on the transport of auto parts, while other business will shift to the railroad’s intermodal network.
Norfolk Southern Corp. has restructured its Triple Crown Services (TCS) subsidiary to focus on the transport of auto parts.
The railroad said it will “work with shippers and logistics partners to convert other business handled by Triple Crown Services into Norfolk Southern’s current intermodal network.”
TCS specializes in the use of RoadRailer equipment in dedicated trains. While TCS will continue the RoadRailer service for auto parts shipments moved between Detroit and Kansas City for the “foreseeable future,” it will shift to containers in other NS lanes.
NS noted Triple Crown Services has annual revenues of about $350 million and a workforce of 240 employees. The railroad said it “expects to downsize the workforce by about 200 employees by the end of the year.”
As a result of the restructuring, NS said expects accelerated depreciation and other costs totaling about $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 starting in 2016, the railroad said.
NS restructures Triple Crown Services
