How Norfolk Southern Corp Affects the Hampton Roads Area - Literature review Example

Abstract How Norfolk Southern Corp. affects the Hampton Roads Area This paper aims to study the significance that the Norfolk Southern Corp has on residents of the Hampton Area.  The company has major railway freight roads that prove very important in the transportation of raw materials. Every year, about 150 million tons of raw materials are transported through the railway. This proves significant to the residents of the area and the neighboring community. As a result, many companies have sprung up. But there have also been claims that the railway networks that the company owns interfere with power and sewerage lines. This review will look into the issues and in the end offer a concise and concrete analysis of the effects of the Norfolk Southern Corp on the residents of Hampton area. Primary information about the company as well as sources is encompassed in the review so that as more information about the relationship that exist between the company and area residents- and the area in a general- are deeply established. It is hoped that this paper will provides an informative insight into the significance of the company to the residents, the neighboring community and the micro economy of its environs.  Thesis: There is a correlation between Norfolk Southern Corp and the economy of the Hamptons Roads Area. Introduction The Norfolk Southern Corporation is the company that owns Norfolk Southern Railway Company.  The company mainly focuses on transporting raw materials, semi-processed products and processed goods mainly in the Southeast, Midwest and East areas though interchanges with rail carriers in all parts of the United States.  The company also takes part in overseas freights transportations through Gulf Coast and Atlantic ports.  The company provides services as well as offering intermodal network in almost half of the Eastern part of the USA. It is estimated that in 2012 alone, the company covered about 20,000 miles in some 22 states and the Columbia (The Right Direction: Norfolk Southern Corporation 2002 Annual Report and Form 10-K p72). The system is such that it reaches various individual companies, mines, electric generation facilities in eastern and western Kentucky, northern southern West Virginia as well as Western Pennsylvania. It covers distribution centers, companies, transload facilities and various businesses located within its areas of operation. The company’s subsidiary christened Triple Crown Operations provides truckload transportation, through road trailer services. This is a technology that integrates both under-the-road and above-the-road transportation through the use of tractor trailer and highways by use of locomotives. Triple Crown also uses traditional trailers that can be moved on flat cars.  Triple Crown alone provides services in Ontario, Quebec as well as major areas of Eastern USA. Coal Coal is the primary commodity group for the company. In 2012, the company handled up to 156.1 million tons, an equivalent of 1.4 million carloads, most of which originated from eastern coal basins with the rest coming from coal basin in Chicago and Memphis gateways (Robertson et al p22). The Coal Franchise The coal industry that the company operates supports generation of electricity. The production of cheap electricity directly benefits the numerous companies that have sprung up. As a result, the cost of production is lower for the companies. If annual reports are anything to go by, companies within and without the Hampton Road area are making good profits. This offers jobs to the people and improves its economy and the living standards of the people. The company serves about 100 coal generation plants (Kutta p25). What is more, the company serves export, industrial, metallurgical markets through river, rail, coastal facilities and lake. There are various terminals at River Ohio, Virginia, Lambert’s Point, Baltimore Port and Lake Erie. General Merchandize The general merchandize market group that the company operates includes commodity groupings such as agriculture, chemicals, consumer products, automotive, metal products and construction, clay, paper and forest products. The chemicals that the company trade in include sulfur and its compounds, chlorine and bleaching compounds, petroleum products, rubber, plastics, industrial products, municipal and chemical wastes. The agricultural and consumer products that the company trades in include wheat , soybeans, corn, fertilizer, poultry and livestock feeds, food oils, beverages, flour, consumer products, sweeteners, ethanol and military items. Metal and construction products include aluminum products, scrap metals, aggregates, cement, bricks and minerals (Kutta p25). Automotive products that the company deals in include assembled products for Chrysler, BMW, General Motors, Honda, Mercedes Benz, Toyota, among other popular brands on the roads. It also manufactures auto parts for Ford, General Motors and other car makers in the world. The paper, forest and clay products include wood and lumber products, paper products, wood pulp, clay, wood fibers and scrap paper. The carloads that were handled by the general merchandise section of the company were 2.3 million in 2012 (Kutta p24). Intermodal Market The intermodal market group of the company consists of domestic and international containers, shipments in trailers, as well as RoadRailer equipment (Logistics & Technology p28). The company handles the shipments on behalf of steam ship lines, marketing companies, truckers as well as other shippers. The intermodal units that the company handled in 2012 totaled 3.4 million. Passenger Operations The Amtrak- the passenger operation for the company-operates passenger trains that run on the company’s lines on a regular basis between various locations, including Lynchburg and Alexandria, Virginia, Petersburg and Norfolk, Charlotte and Raleigh and North Carolina. The extensive network of roads proves convenient to citizens of South Hampton in that they can reach their destinations much more easily and in time, factors that contribute to support the economy. Most of the residents are middle-level in terms of income and living standards, thanks to the opportunities brought about by the improved networks (Logistics & Technology p28). The area acts as a hub and a conduit through which goods are freighted. It has immensely developed as a result of this. Much of trades in Eastern parts of Europe originate from this area.    Description of the Hampton Roads A metropolis and a water body in South East Virginia, Hampton Roads covers the Virginia Beach, Newport News, Norfolk and the VA metropolitan area. The area is also known for its huge military presence, shipyards, ice-free harbor, coal piers and long stretches of waterfront beaches and property. All these contribute to the stability and diversity of the region. Hampton Road is home to one of the largest natural harbors in the world (Hampton Roads Business Contact p29). The natural harbors are popularly referred to as roads or roadstead. The region is dotted with several rivers such as the Nansemond River, Elizabeth River, James River, alongside smaller other rivers. The rivers empty into Chesapeake Bay, running into Atlantic Ocean (Logistics & Technology p28). Its land area includes an assortment of cities, towns and counties on the Virginia Peninsula as well as in South Hampton Roads. With a population of over 2 million people, the city is ranked number 37 in the USA, in terms of its metropolitan statistics. What is more, the area has many historical sites and tourist attractions that draw visitors to this scenic city every year. Perhaps city has derived much of its economic growth due to the natural harbor that provides docking points for ships ferrying raw materials (Minoli p81). This coupled with Norfolk Southern Corp major investments makes the region such a powerful economy in the USA. The region is responsible for many direct and indirect jobs and opportunities. Economic growth has been achieved from both the land and water economic activities and related events. The harbor and its tributaries are important conduits for transportation. Terrain Challenges In as much as the region has a natural harbor, and tributaries that offer an alternative means of transport, they presented obstacles to businesses based on the land and travel. This has been the greatest undoing of the terrain. This has had impact on trade-reduced trade and growth opportunities. However, the Norfolk Southern Corp used a highway technology that saw the roads and railway networks built on over the river and the harbor. Much of the land still remains non-reclaimed due to the difficult terrain (Minoli p52). The creation and maintenance of adequate infrastructure is the major challenge. The Hampton Roads Bridge and the Memorial Bridge Tunnel are the major crossings at the Hampton Beltway interstate- linking the larger population centers of the Hampton Roads. A Roads Transportation Authority was put in place in 2007 under state law to charge additional taxes so as to generate additional revenue for significant transportation projects. This included the much-needed but expensive third crossing at the Hampton’s Roads Harbor. Numerous Opportunities The citizens of Hampton Roads can boast of numerous opportunities. They have the ambiance for developing, at least economically. They have one of the best oceanfront in the world; moderate climate; scenic waterways, among other advantages (Minoli p67). The Norfolk Southern Corp comes in handy in opening up the area to investors. The transportation system is superb and is considered world-class by all standards. It is a cool factor and a sense of place to the residents of this area. They have all the factors they need for economic growth. Young people are presented with opportunities they can tap, ranging from setting up businesses, to providing ready labor in the Norfolk Southern Corp company, among other companies that have sprung up, thanks to the numerous investment opportunities. Hampton Roads is home to many industries. The maritime industry, for instance, is in dire need for young talent (Hampton Roads Conference p22). Technology companies, thanks to Norfolk Southern Corp are on the rise. Higher education opportunities and the development of a strong workforce are some of the positive development factors that the company can. Shows and concerts are offered to the numerous visitors, who throng the region. Factors of Concern With the Norfolk Southern Corp offering numerous opportunities to the locals and internationals, rules should be enacted to ensure that the locals are given the first priority. The wages should be set at a minimum considering the inflation in the economy. Due the fact that the region is a beehive of activity; the businesses, the military and factories, issues of insecurity and environmental pollutions arise (Minoli p71). Pollution is an area of concern. Most of the effluents coming from the companies and industries are released into the nearby water bodies. These threaten aquatic life and are potential health hazards. In this era when global warming is a popular topic, there is need for the Norfolk Southern Corp to consider initiating Go-Green campaigns so that the environment will be preserved and the effects of carbon dioxide emissions-alongside other greenhouse gases-are alleviated (Robertson p23). Some of the roads at the interchange need serious renovation. These were roads built several decades back. The original design was meant to carter for the low population then. Things have changed, and population in the region has more than doubled in the last century. Interference with power lines and Sewers The intricate networks of roads and rails have come with a major bottleneck. Some power and sewer lines have been disrupted, leading to serious hazards. The original designers seem not to have taken such matters into consideration. This poses a serious health risk to the residents of Hampton Roads. However, such concerns have been voiced and intervention actions taken to arrest the situation. Conclusion The Norfolk Southern Corp Company has helped open up the Hampton Roads are to the rest of the world. The tremendous economic growth that the area enjoys is attributed to good transportations infrastructure. The area acts as a conduit for passage of goods and raw materials. With millions of tons traded each year, this region benefits from the trade and trade opportunities. This paper has discussed various perspectives, the factors of growth and the need for improvement on transportation infrastructure. The people have benefitted solely due to business and employment opportunities offered by Norfolk Southern Corp and other dependent-companies. Work Cited "Logistics & Technology - Rail & Intermodal - Norfolk Southern Improves Train Control."         Traffic World. 269.40 (2005): 28 Hampton Roads Business Contact. Norfolk, Va: Hampton Roads Chamber of Commerce, 2007.       Hampton Roads Conference. S.l.: Great Neck Pub, 2009. Kutta, Paul. "Rail Cars to Tidewater: The Norfolk Southern Railbus Story." National Railway Bulletin. 48.2 (2003): 18-27. Minoli, Daniel. Enterprise Architecture a to Z: Frameworks, Business Process Modeling, Soa,        and Infrastructure Technology. Boca Raton: CRC Press, 2008. Robertson, Gary, Donna C. Gregory, and Joan B. Tupponce. "2012 Virginia CfO Awards."      Virginia Business. 27.8 (2012): 20-23. The Right Direction: Norfolk Southern Corporation 2002 Annual Report and Form 10-K.              Norfolk, Va.: Norfolk Southern Corp, 2003.   Read More