Trains News Wire
Activist investor group would put Norfolk Southern back on PSR path, reduce operating ratio to 57%By Bill Stephens | March 26, 2024Hump yards, low-margin traffic would be in the crosshairs of operations makeover under proposed CEO, chief operating officer changes
CLEVELAND — An activist investor group says its proposed Norfolk Southern management team would improve the railroad’s operations, service, and profitability by jettisoning CEO Alan Shaw’s resilience strategy and adopting the low-cost Precision Scheduled Railroading operating model.
In a letter to shareholders today, Ancora Holdings says its plan for NS would cut costs, focus on the most profitable merchandise traffic, and produce a 57% operating ratio within three years. That would be a 10.4-point improvement over Norfolk Southern’s 2023 operating ratio.
Ancora aims to get a majority slate on the NS board at the railroad’s May 9 annual shareholder meeting. . . .