Josh Raglin, Norfolk Southern’s Chief Sustainability Officer, on improving freight rail fuel efficiency and emissions What are the biggest improvements you can point to in terms of making freight operations more sustainable? From an environmental perspective, we've been making huge strides in fuel efficiency. We've improved 12% just in the last five years. We've got a really great team on board and we're continuing to push the lever this year. We've had four quarters now of record fuel efficiency on locomotives, so that's very important for us. That's 90% of our Scope One and Two emissions, and that’s also our second-largest expense. Do those gains come primarily from newer-generation locomotive engines? For the last 10 years, we've been modernizing [our fleet] at around 100 units a year. We'll actually hit our thousandth unit, I believe, next week. And we're converting units from DC traction to AC traction as part of those modernizations as well, which gives you a lot more pulling power, a lot more efficiency on the railroad. A lot of investments in technology and energy management systems. Think of it as cruise control for trains. Can you elaborate on the benefits of AC traction for freight trains? The tractive effort greatly improves. Two AC locomotives have the pulling power of three DCs, so it's a huge difference. For example, we've got 700 fewer locomotives in our fleet since 2019, and part of that is because of the conversions that we've been investing in over the last 10 years. Electrification seems trickier for heavy freight locomotives compared with cars and trucks, given how much power you need to get moving. Are battery-powered trains realistic or is a hybrid powertrain a better option? On the battery side, we actually developed one in-house back in 2008 called the NS 999 and it had 1,080 12-volt car batteries on it. We replaced the batteries a couple of years later with better technology and utilized that unit for about 10 years in a yard application, and eventually sold it to a company in California. The last time I checked, it was still in operation out there, of course, with better battery technology. We've looked at some of the battery electric locomotives that the OEMs are starting to come out with. When we started looking at where we put these units, we started talking to the local utility and it's a really quick conversation when you get into the energy demand of charging. For example, for one locomotive to be charged requires the equivalent to 83 EV fast chargers. When you say, “Hey, I may have four, maybe six locomotives at the site,” the utility says, “There's no way we're going to be able to get you that much power.” [Battery-electric locomotives] are going to have a limited use case. Hybrids offer a huge opportunity. We've got a project we announced last year with Alstom in New York state. They're going to retrofit two of our units to create hybrid units. They'll run off batteries all the time, but have a small Tier-IV diesel engine on board to run and charge the batteries as needed, similar to some of the hybrid trains we have. But they will also be able to be plugged in. That’s a rail yard application. I think there are huge opportunities to incorporate more batteries on existing locomotives. Along with improving fuel efficiency and more electrification, what other areas are helping improve sustainability? One of the really significant highlights this year, and I had to double-check the numbers when I got them, was like scrap metal recycling. Our waste diversion rate last year was 88%, which is absolutely huge. But the rail industry has a great story there. Many of our assets are long-lived and they're able to be repurposed at the end of life, with scrap metal being one of those. Some of it's old rail, some of it's old box cars, for example. A lot of it’s just cleaning up metal across our system. We had a concerted effort across our operations teams to really put more emphasis on our yards and in our right of way and saying, “Hey, let's get a lot of the scrap metal cleaned up.” We moved forward with some retirements of the boxcar fleet as well. We recycled over 250,000 tons of scrap metal last year. That was a five-X increase over the prior year and we're probably on track to hit that again this year. It's a really good number and it's got financial gain. We sell that material and it contributes to the bottom line as well. |